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 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.

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