GBP/USD Weekly Price Forecast – British Pound Has Rough Week Against Greenback

The British pound initially tried to rally during the week but then sliced straight through a bunch of minor support levels before it broke through the major 1.20 support level. By doing so, the market crashed into the 1.15 level next, but then had a nice relief rally to in the week. I think it’s only a matter of time before the sellers come back into the marketplace, with a special focus near the 1.20 handle. If we do break above there, then the 1.2250 level becomes the next area that the sellers may come back into the fray at.

GBP/USD Video 23.03.20

I don’t necessarily think that we are going to go straight down and therefore I believe that the last couple of weeks have been overdone. Fading rallies probably is the best way to go going forward, but maybe off of the daily chart more than anything else. I think at this point, it’s going to take something rather special to bust up the demand for US dollars, but we are getting overstretched and that may be part of what Friday was about in several currency pairs. Looking at this chart, it’s clear that we guard negative, but it’s also clear that perhaps we need a little bit of a relief rally to sell into in order to pick up the necessary real estate needed to make a decent risk to reward type of trade. At this point, I am going to be patient and look for the opportunity to short this market at higher levels so I can pick up the US dollar “on the cheap.”