GBP/USD Weekly Price Forecast – British pound breaks out for the week

The British pound has broken out to the upside during the trading week, slicing above the 1.30 level as well. By slicing through the downtrend line of the descending triangle, this shows a real resiliency and the British pound. We are closing towards the top of the candle stick for the week, so most certainly I think there is a long position to be had here, but we are getting close to significant resistance. I think short-term pullbacks will calm, and they should be looked at as value propositions as the British pound is getting a boost from the delayed Brexit coming.

GBP/USD Video 28.01.19

That being said, on the daily chart we are starting to see the market try to push back a little bit so I think if you drill down to shorter time frames, you can get a better entry. I believe that the 1.30 level in the 200 day EMA underneath will offer support as well, which of course you can see on the weekly chart. With this being the case, I do like the idea of buying and reach towards the 1.35 handle, but as I said I would look for a tighter entry than simply buying at this level.

If we do break down below the 200 day EMA, then the next major support level IC is the middle of the neutral candle from last week, which is at the 1.2850 level. Overall, I believe that the market is bullish, but I also believe that if you are patient you should get better pricing.