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

The British pound has pulled back a bit during the week, wiping out the gains from last week. This of course is a volatile market due to the Brexit, but ultimately this is a situation where we are at very low levels historically speaking, and therefore I think it’s only a matter time before we take off to the upside. Once we clear the 1.33 handle, it’s very likely that the market will go looking towards 1.35 handle, and then possibly the 1.40 level after that.

GBP/USD Video 11.03.19

Looking at this chart, the 1.27 level underneath is the beginning of major support, and therefore I don’t think that we are going to break down through there. The downtrend line is still on the chart just remind me that we have broken above there, pulled back there to find support, and then take off to the upside. Overall, this is a market that I like buying on dips, but in small increments because of all of volatility. Eventually, we will get some type of inclusion to the Brexit, and unless it’s a “no deal Brexit”, I think that the market will continue to go higher. Quite frankly, looking at the longer-term charts, it looks as if the British pound has essentially bottomed. We have a long way to go to the upside but obviously there will be headlines out there that continue to push things around. On the other side of the trade, the Federal Reserve is in no position to start raising rates anytime soon, so that should give us the green light to go higher, assuming that the Brexit smooth out a bit.

Please let us know what you think in the comments below