GBP/USD Weekly Price Forecast – British Pound Has Negative Week

The British pound fell significantly during the week but did get a little bit of a bounce heading into the weekend. At this point though, the British pound is most certainly a terribly negative currency, as we had formed a massive shooting star during the previous week only to turn around and fall below it again during this past week. The 61.8% Fibonacci retracement level of course attracts a lot of attention, and therefore the 1.25 level has even more importance due to that. Furthermore, the US Treasury market continues to attract a lot of inflow, so it makes sense that the US dollar will continue to pick up a bit of momentum.

GBP/USD Video 27.04.20

To the downside, I think the 1.22 level will be the next major support barrier and I do think that it is only a matter of time before we get to test that level again. Rallies are to be sold, and it is not until we break above the top of the shooting star from the previous week that I would get bullish at this point. After all, the United Kingdom will be locked down much longer than the US at this point, so that of course will weigh upon the economy. Furthermore, there is a huge demand for treasuries in the United States so that one-two punch of course will continue to weigh upon this market. Do not get me wrong, I am not saying we cannot rally but I do think that it is only a matter of time before this market breaks down for a bigger move.