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

The British pound has initially fallen during the week, reaching down to the 1.27 level but as you can see we have found a lot of buying pressure underneath there, reaching towards 1.30 level. That’s an area that is essentially “fair value” based upon the potential consolidation area, but I think at this point it’s likely that the shooting stars just above will continue to offer bearish pressure, and I think that given enough time it’s likely that we could have sellers jumping into this market near the 1.30 level. I think that the 1.27 level will continue to be massive support as well, so I think we will just simply see a drift lower.

GBP/USD Video 05.11.18

Brexit continues to be a major problem with the British pound, as we don’t have enough clarity in that situation to have people confident about buying cable. Ultimately, this is a market that will be very volatile based upon various news headlines and gameplaying when it comes to Twitter feeds. We see this more than once, and I think that will continue to be the case until we get some clarity. That clarity will give us a major relief rally, and although we had a nice bounce back during the week you will notice that we could not clear the top of the massive bearish candle from the previous week. I think this is a rally that’s already starting to fade, and therefore we should pay attention to that.