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

The last couple of weeks have been tough for the British pound if you are short-term trader, because we keep getting spikes in the price due to headlines and rumors around the world suggesting that we are getting close to a Brexit deal. That Brexit deal is going to decide whether we go higher in the short term or not. Quite frankly, at this point it’s only a matter of having a deal it doesn’t really matter how good or bad it is. As soon as there is a hint that progress is being made, this pair goes much higher. Keep that in mind, as it’s what you can expect once we finally get the final decision.

The proclivity is to the upside and that’s been proven a couple of times already, as the spikes have been so brutal. I currently believe that the 1.30 level is crucial, as there is a downtrend line there, and of course it is a large, round, psychologically significant figure. If we clear that on a daily close, this pair will probably go looking towards the highs again near 1.45 above. The alternate scenario is that we break down through the neutral candle that sits at the 1.2750 level, which would be a very bad sign and probably send this pair looking for the lows again near the 1.20 level. I believe that since we are getting close to the Brexit decision and liquidity has come back into the market after the holiday, we are about to see a strong move. I believe the market wants to go long.

GBP/USD Video 10.09.18