GBP/USD Weekly Price Forecast – British pound continues slight recovery

The British pound initially fell during the week but then rallied towards the crucial 1.2250 level again. This is an area that has been important more than once, so it makes sense that we are struggling just a bit here. That being said though, I think that the market is simply bouncing from a very low level.
Christopher Lewis
GBP/USD weekly chart, August 26, 2019

The British pound has initially fallen during the week, but then bounce significantly to reach towards the 1.2250 level. That being the case, it makes quite a bit of sense as that’s an area that has attracted a lot of attention. With that, and the fact that we have bounced a bit should not be a huge surprise simply because we had sold off so drastically. The 1.20 level of course attracts a lot of attention as it is a large, round, psychologically significant figure, but at the end of the day it’s just that, a psychological figure. I do think that we could go through the 1.20 level in fully anticipate seeing that relatively soon.

GBP/USD Video 26.08.19

As long as the Brexit is up in the air, and let’s face it nothing has gotten any better, it makes sense that the British pound would continue to suffer at the hands of other currencies, especially the US dollar which gives a bit of a boost due to the fact that it is the strongest economy of the major markets, and of course there is a huge bid for US Treasuries. At this point we still need to look for signs of exhaustion to start selling, because quite frankly nothing has changed nor will it anytime soon. With that, I simply wait for my opportunity to start selling again as we build up enough momentum to finally break the 1.20 handle.

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