GBP/USD Weekly Price Forecast – British pound rally slightly during the week

The British pound fell initially during the week but turned around and form a slightly positive candle. We have formed a couple of hammers previously, and it looks as if the US dollar is starting to struggle a bit, perhaps getting ready to give back some of its gains, not only in this market, but several other ones. Because of this, I believe that the market is getting ready to make a shift to an anti-dollar bias, perhaps due to the trade war and the escalation of tariffs. At the end of the day, I think that although the British pound looks as if it is ready to rally, it’s probably going to be a bit more sluggish than perhaps the EUR which at least has the reconciliation of some of the political issues going for it.

S not say that there isn’t a buying opportunity here, just that it may be a lesser opportunity than some of the other ones around the world. If we were to break down below the 1.30 level, that would be an extraordinarily bearish sign, and I think at that point we would probably break down towards the 1.25 level. However, as we have seen a bit of a reprieve lately and a potential “double bottom” on short term charts, we may be seeing this market turn around.

GBP/USD Video 09.07.18