GBP/USD Weekly Price Forecast – British Pound Continues To Look Choppy

The British pound went back and forth during the course of the week, as we get a lot of push back and forth from both buyers and sellers. The Friday session had a very poor retail sales figure release, and that of course weighed upon the market.
Christopher Lewis
GBP/USD Weekly Price Forecast - British Pound Continues To Look Choppy

The British pound continues to be very choppy, hanging around the 1.30 level as the markets are trying to find some type of general direction to follow. Ultimately, this is a market that can’t seem to get ahead of itself but isn’t exactly breaking down either. With that being the case it’s likely that we will continue to see a lot of noisy trading, but the real pushback was on Friday when retail sales in the United Kingdom came out very weak. Having said that, the market has broken through a lot of resistance as of late, so it would make sense that the British pound would take off to the upside.

GBP/USD Video 20.01.20

However, we do not have any type of catalyst right now, and the market is more or less in a “holding pattern” as the markets have frozen up in general. It’s not just the British pound, the entire Forex complex that has seemingly taken a bit of a holiday. With that, look at the 50 week EMA underneath as potential longer-term support, but if we can break above the top of the couple of shooting star shaped candles above, then the British pound can take off. It certainly seems as if it is struggling to make sense of where we are going because the last four candlesticks have been a hammer, a shooting star, another shooting star, and now a neutral candlestick. In other words, we have nowhere to be anytime soon. We will eventually get some type of impulsive candlestick and then can follow in that direction.

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.