GBP/USD Weekly Price Forecast – British Pound Breaks Hard

The British pound initially tried to rally during the trading week, but then broke down below the 1.30 level, and then decided to reach towards 1.25 level in rather short order. By doing so, the market looks very likely to continue falling from here and if we break down below the weekly candlestick it’s likely that the 1.2250 level will be targeted, followed by the 1.20 level after that. I do not have any interest in buying the British pound unless of course the US government does some type of massive stimulus that devalues the US dollar rapidly. I don’t think that will be the initial reaction anyway, and of course we have a lot of concerns when it comes to the United Kingdom and working its way out of the European Union.

GBP/USD Video 16.03.20

Rallies at this point will probably be faded unless of course we can recover the 1.30 level which would be a very bullish sign. In a very uncertain world, it makes quite a bit of sense that this pair would drop as there’s even more uncertainty in the United Kingdom than most places. Coronavirus fears and global disruption of the supply chain will continue to weigh upon anything that is remotely risk related, and one would have to say that the British pound is most certainly risk related at the moment. I do believe that the 1.20 level will offer quite a bit of support and could offer a bit of a floor.