GBP/USD Weekly Price Forecast – British pound pulls back for the week

The British pound pulled back a bit during the week, reaching towards the 1.30 level. This pullback will be looked at as potential trouble to sum, and of course the headlines out there with the Brexit will continue to move the market. However, there is a different technical look to the chart than the doom and gloom that we have seen so much of.
Christopher Lewis
GBP/USD weekly chart, February 04, 2019

The British pound pulled back a bit during the week, taking back some of the gains from the previous week. However, the market still has plenty of support underneath, not the least of which would be the previous downtrend line that had been broken above. It  is because of this that I think eventually the buyers will jump back in, especially near the 1.30 level which coincides quite nicely with this trendline. I believe that we may have seen the bottom of the British pound, because quite frankly there’s nobody left to sell at this point. Also, it looks as if the UK Parliament is trying to find a way to soften the blow of the Brexit, not the least of which would be a delay in the Brexit.

GBP/USD Video 04.02.19

I do expect a lot of volatility in this pair, but ultimately I believe that the historical low pricing won’t hold forever and I do think that the “pain trade” is probably the best one, meaning that as long as we can stay above the 1.30 level, I think it will attract more buyers. However, if we were to close on the daily chart below the 1.30 level, then we may have to revisit the 1.27 level to find buyers again. Expect a lot of headline noise coming from the Brexit, but then again that shouldn’t be anything new to you.

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