GBP/USD Weekly Price Forecast – British pound looking for a bottom

The British pound has fallen during the course of the week but we did bounce a bit from just above the 1.25 handle which of course is a reasonably decent sign. That’s a large, round, psychologically significant number, and therefore it makes quite a bit of sense that there should be buyers in that area.
Christopher Lewis
GBP/USD weekly chart, June 06, 2019

The British pound has fallen a bit during the trading week, but not enough support underneath at the 1.25 area to turn things around and form a hammer. That being the case, it’s very likely that we could rally towards the 1.28 level, an area that has been important a couple of times in the past as well. A break above there could then go to the 1.30 level. All things being equal, it does look like we are trying to find some type of bounce here to continue to go back and forth in the overall consolidation area which I think is starting to look more and more like it’s going to be between the 1.25 level on the bottom and the 1.35 level on the top.

GBP/USD Video 03.06.19

I would expect a lot of noise, because quite frankly there’s a lot of noise around the Brexit. Obviously, we don’t quite know how it’s going to play out but it does look like we are trying to come to some type of conclusion to that situation and of course give us an opportunity to take advantage of the market being cheap. However, if we were to break down below the 1.25 handle, then we will probably go down to the 1.20 level underneath. That of course is a worst-case scenario right now, something that I don’t see happening anytime soon.

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