GBP/USD Weekly Price Forecast – British pound rallies for the week but finds resistance again

The British pound rallied significantly during the week, but we you don’t see on the weekly chart is that the Wednesday and Thursday candle six both were shooting stars. The Friday candlestick was a nice recovery though, so it looks as if we continue to struggle for directionality on the short-term charts. The obvious resistance right now is at the 1.31 handle, so we were to break above there, then the market could go back towards the highs near the 1.34 handle. However, it’s not until we break above the 1.31 level that we can get a bit more comfortable about buying.

GBP/USD Video 06.05.19

Based upon the daily chart, we could very easily see this market rotate lower again next week. I do believe that longer-term we are trying to build up enough of a base to turn things around and go higher, but I don’t think were quite ready to do it yet. Quite frankly when it comes to the British pound we need to see some type of agreement with the Brexit in order to get involved to the upside for the longer-term move. If we do have that happen though, it’s very likely that this market will move much higher and continue to grind to very high levels as we are at historically cheap levels, but obviously have a lot of noise and static involved in this market currently as we are awaiting the final outcome of the Brexit negotiations which have recently been delayed yet again.

Please let us know what you think in the comments below