GBP/USD Weekly Price Forecast – British Pound Pulls Back Drastically After Johnson Comments

The British pound has broken down quite drastically after the surge higher earlier in the week, as Boris Johnson suggested that there would be no extension when it comes to leaving the European Union. Quite frankly, he came to deliver Brexit and it looks like he’s going to. This had a lot of the “weak hands” in the market running for cover, and therefore we have seen a pretty significant break down. That being said though, the 1.30 level should continue to be very important as it is the top of the previous bullish candle. That candlestick breaking to the upside opens up the door to a potential move to 1.38, and obviously the 1.35 level will have caused significant resistance anyway. After this pullback though I anticipate that the British pound will continue to grind higher and eventually break back towards the 1.35 handle, before fulfilling that move to the 1.38 handle again.

GBP/USD Video 23.12.19

If we were to break down below the 1.30 level and then it’s likely the market could go down to the 1.28 handle. That is a 200 point range and should be massive support from what I see. Quite frankly, even though we have had a negative week, I believe that it’s only a matter of time before we rally and go much higher. I believe that the British pound is changing the overall trend, which of course is never a quiet affair. 2020 will probably see the British pound go much higher.

Please let us know what you think in the comments below