GBP/USD Weekly Price Forecast – British pound rallies a bit for the week

The British pound has been hammered over the last few weeks, as the Brexit continues to cause a lot of headaches for Sterling traders. The markets have been very ugly for the Pound, but there will come a point in time where there won’t be anyone else to sell. We may be getting close to that point, but it doesn’t mean that you should be buyer either. The market has a lot of selling pressure above just waiting to be tested, and the potential negative headlines out there could come into play at various levels.

GBP/USD Video 10.06.19

The 1.28 level will be the initial area of potential selling. The market breaking above there could have the British pound could then test the 1.30 level after that – a place that should be massive as it is not only structurally resistive, but also a large round number. The 50 week EMA is there as well, so I suspect that is about as far as we can rally in the near term. The one outlier is that the Fed now looks likely to be easier than tighter when it comes to monetary policy. The downside has the 1.25 area that offers a lot of support, and a break below that would change everything. That could open the door to the 1.20 level underneath. The level should be massively important to traders around the world. At this point though, its likely that we simply see the market fade rallies as they come. Look at relief rallies as an opportunity.

Please let us know what you think in the comments below