GBP/USD Weekly Price Forecast – British Pound Runs Into Brick Wall

The British pound rallied initially during the week, breaking above the 1.2750 level for a minute, but pulled right back down. The resulting candlestick looks quite a bit like a shooting star, and it does look like we are going to roll over and start favoring the US dollar again. Having said that, there is also a lot of support underneath though I expect more choppy behavior than anything else. On the other hand, if we were to break above the top of the candlestick for the week, then that would be very bullish sign and could send this market towards the 1.30 level.

GBP/USD Video 15.06.20

Underneath, I see the 1.25 level is the next major barrier, and if we break down below there then you have to start looking towards the 1.2250 level. This is a market that continues to see a lot of volatility, and therefore it makes quite a bit of sense that we are all over the place, but the US dollar is favored when people are worried. However, if the market is likely to see a lot of back and forth, and as a result it is probably more of a short-term market than anything else, but it is worth paying attention to if we make a break above the highs, simply because it would show a continuation of the impulsive move to the upside. To the downside, it is probably going to be a bit slower unless of course we have some type of major “risk off” event.

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