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.

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

Top Promotions

Top Brokers

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.