GBP/USD Weekly Price Forecast – British Pound Rallies for the Week

The British pound has broken higher during the week, reaching towards the 200 week EMA. At this point, it’s also important to know that the 1.30 level is in the same vicinity. Ultimately, the market does look as if it is the tide is turning in general, and you could even make an argument for some type of weird bullish flag pattern. Nonetheless, I think it’s all about the US dollar being sold off, and therefore the British pound probably continues to go higher.

GBP/USD Video 09.03.20

That being said, you may get an opportunity to pick up the British pound at lower levels, but clearly it looks as if it wants to go back towards the 1.35 handle. As the US dollar has been so oversold, it could get a little bit of strength early in the week, but I do think that it’s only a matter of time before the buyers reenter the situation in this market. The candlestick is very bullish looking, and we are closing towards the top of it which always helps the situation as well. While I am not overly excited about the British pound itself, it’s obvious that the US dollar is being repriced for massive interest-rate cuts. The one potential issue of course is going to be that the Bank of England may cut rates. That could cause a temporary shock but, in the end, the Federal Reserve will be cutting more than the Bank of England so therefore it still should gradually creep its way higher as far as this market is concerned.