GBP/USD Weekly Price Forecast – British pound has wild ride for the week

The British pound broke down rather significantly during the week, but then bounced a bit. However, what you don’t see on the weekly candle stick is that the Friday candlestick looks rather sickly. Because of this, I think that the break down during the week that a lot of technical damage that should continue to go in favor the sellers.
Christopher Lewis
GBP/USD weekly chart, January 07, 2019

The British pound has been very noisy during the week, breaking down below the 1.25 handle, and even formed a couple of very bearish looking candlesticks within the weekly candle stick that you are looking at. Because of this, I think what we will probably see is a ton of noise, but I think that the British pound will continue to see a lot of negativity due to the Brexit, and of course the lack of clarity when it comes to that situation. Beyond that, the jobs number in the United States was very strong and the Federal Reserve may still be looking to raise interest rates at least twice during 2019.

GBP/USD Video 07.01.19

If we can break down below the 1.25 level, then we should fulfill the descending triangle that measures for a move down to the 1.22 handle. I would not be surprised at all to see that happen, but it may take a while to get there as there will be a lot of conflicting headlines between now and the end of March when the United Kingdom will officially leave the European Union. I think there is a lot of volatility ahead of us, and volatility typically erodes confidence, which should continue to put bearish pressure on this market. Beyond that, US Treasuries continue to be bid, which drives up the value of the US dollar as well.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.