GBP/USD Weekly Price Forecast – British Pound Shows Exhaustion

The British pound rallied significantly during the week initially, but then gave back quite a bit of the gains to form a massive shooting star. Furthermore, the 200 week EMA has offered significant resistance, so I do think at this point in time we may be getting a bit ahead of ourselves and may have to pull back in order to find enough momentum to go higher. The 1.30 level underneath will offer support based upon the fact that it is previous support, and the fact that of course it is a large, round, psychologically significant figure. If we were to break down below there, then it is likely that the pair could go down towards the 1.2650 level, an area that would be massive resistance at the past.

GBP/USD Video 24.08.20

On the other hand, if we were to turn around a break above the top of the candlestick, then it sends this market towards the 1.35 level above. I do believe that a lot of volatility will continue to be a major issue, as the world tries to figure out what they are going to do with the longer-term outlook of the US dollar. If we were to break out to the upside it would be an impulsive candlestick, and when you look at the weekly chart it does make quite a bit of sense that we may go back and forth. Ultimately, I think that the next couple of weeks will probably continue to be very choppy as the vacation season is going to continue to be a major influence in this market as well. However, it is worth noting that this area does look very difficult to get above.

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