GBP/USD Weekly Price Forecast – British Pound Gives Up Gains For the Week

The British pound has rallied significantly during the trading week but gave back the gains just below the 50 week EMA to form a less than impressive candlestick that looks a lot like a shooting star. If we turn around a break down below the bottom of this candlestick, it’s very likely that the British pound is going to go towards the 1.2250 level, and then possibly the 1.20 level. The British pound is going to get hammered due to the fact that the United Kingdom is going to state lockdown longer than the United States, and of course there are a huge number of reasons to think that the US dollar will probably continue to see a lot of interest.

GBP/USD Video 20.04.20

This is most prevalent in the US treasury markets, as the demand for treasuries have not dropped in value, and the yields remain very tight. This means that some of the smarter markets out there still believe in the efficacy of the US dollar, and therefore this won’t change anything. I believe that given enough time, once we break down below the bottom of this candlestick, we will not only go towards the 1.2250 level, and then the 1.20 level as mentioned previously. A breakdown below that level more than likely open up the door to the 1.1750 level before it hits the 1.15 level again. On the other side of the equation, and there is always one, if we can break above the top of the weekly candlestick that would be a very bullish sign, looking towards the 1.29 handle, and then eventually the 1.30 level after that.