GBP/USD Weekly Price Forecast – British Pound Pulls Back From Big Figure

The British pound pulled back a bit during the week, as the 1.30 level has offered a bit too much in the way of resistance. The 1.30 level of course is a large, round, psychologically significant figure, and of course attracts a lot of attention in and of itself. When you look to the left, you can see that the 1.30 level has been an area where the market broke down from previously, and therefore it makes quite a bit of sense that we have pulled back from here as the market had gotten parabolic. Keep in mind though that the Brexit situation continues to be a major issue when it comes to the British pound, and although we have broken the hard to the upside, the 1.30 level is going to continue to be crucial.

GBP/USD Video 28.10.19

If we can break above that level, then the trend will have changed and reached towards 1.33 handle, and then eventually the 1.40 level after that. To the downside, if we were to break down below the 50-week EMA, then we could go down to the 1.20 level. All things being equal though, there are plenty of headlines coming that will cause all kinds of issues. The US dollar has gotten a bit of a boost against many other currencies, so that may way upon this market as well. Overall, bond markets have been looking likely to create inflow of greenbacks as well, so it’s possible that we could see a flash lower. At this point it looks as if the 1.20 level underneath is going to continue to offer a “floor.”

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