GBP/USD Weekly Price Forecast – British Pound Continues Consolidation

The British pound has dropped a bit during the week, reaching down towards the 1.28 level. At this point, the market is trying to figure out where to go next, and at this point needs to make a decision as to whether or not it can break above the 1.30 level above.
Christopher Lewis
GBP/USD weekly chart, November 11, 2019

The British pound broken out a bit during the week, reaching towards the 1.28 level by the time we closed out on Friday. At this point, the market has been going back and forth trying to break out above the 1.30 level above. If we can clear that level, then it’s likely that the market probably goes to the 1.33 handle above, and then possibly the 1.40 level after that longer term. Overall, this is a market that will continue to see a lot of choppy and noisy trading, as Brexit is all over the headlines and of course will continue to push this market back and forth.

GBP/USD Video 11.11.19

Looking at this chart, it is forming a bit of a bullish flag, as the market continues to see a lot of underlying pressure. If the market can break above there, it’s likely that the British pound should move much quicker to the upside. However, if we were to break down below the 1.2750 level, then the market is likely to drift down to the 1.25 level where it will probably find buyers there as well based upon the daily chart and structure there. That being said, unfortunately the Brexit situation continues to be a major issue, as there are plenty of conflicting headlines, and therefore you can expect a lot of volatility. At this point, building a core position is fine but jumping “all in” right away is a recipe for disaster.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.