GBP/USD Weekly Price Forecast – British pound find buyers during the week

has broken down during the trading week, reaching towards the previous downtrend line that should now be supported. As we turned around to form a hammer, that’s a very bullish sign. I think that the previous couple of shooting star candles of course shows just how choppy and sideways we are, but when you look at the body of the candles , you can see clearly that we really haven’t done much. I think this is another consolidation area, and I think this shows just how much uncertainty there is a round this pair. Ultimately, this is the Brexit affecting the market, as we can’t put too much money to work it seems. However, I think this shows that there is still plenty of resiliency to the British pound, and I think that longer-term we will see buyers. After all, we bounced from the 61.8% Fibonacci retracement level, and the psychologically and structurally important 1.2750 level.

I recognize that it is going to be very choppy and difficult but given enough time we should continue to reach towards the highs again. This is especially true once we get a certain amount of certainty when it comes to what’s going to happen with the Brexit. Quite frankly, the deal doesn’t matter, just that there is either a deal or not and we know what we are working with. Certainty is the one thing this market desperately needs.

GBP/USD Video 08.10.18