GBP/USD Weekly Price Forecast – British pound pulls back for the week but finds buyers in the end

The British pound fell during most of the week, as we continue to see plenty of Brexit nonsense across the headlines. The market simply cannot decide what it wants to do quite yet, although it does seem to be “leaning” to the upside overall.
Christopher Lewis
GBP/USD weekly chart, March 25, 2019

The British pound fell during most of the week, as we reach down towards the significant 1.30 level again. This is an area that has been important more than once, as it is the 61.8% Fibonacci retracement level of the most recent push higher. This is a market that of course has a lot of headline noise around it, as we go through the messy Brexit. However, overnight the European Union allowed for a short extension to the Article 50 move, which has provided some relief to Sterling.

GBP/USD Video 25.03.19

At the end of the day, it’s essentially the same thing that we been looking at for some time, we are simply consolidating in this area after breaking a major downtrend line. It is very likely that this pair continues to try to break out to the upside but with all of the noise going on right now with the Brexit, I suspect it’s going to be difficult to do. Quite frankly, we need some type of resolution to finally do so.

If we can break out to a fresh, new high think it opens the door to the 1.35 level, which of course is a large, round, psychologically significant figure, and of course the market will pay attention to that as per usual. With that being the case, I suspect that we probably have a lot of work to do still, but the close of this weekly candle is a bit encouraging.

Please let us know what you think in the comments below

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

IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US