GBP/USD Weekly Price Forecast – British Pound Stabilizes During Choppy Week

The British pound has gone back and forth during the course of the trading week, as we reached towards the crucial 1.37 handle. We have not broken down below there yet, so as things stand right now, it looks as if the market continues to ask a lot of questions. When you look at this chart, you can see that we had an inverted hammer, a hammer, and now a neutral candlestick. In other words, this shows you just how much confusion there is when it comes to this pair. After all, the British pound should continue to see strength due to the fact that we have the UK economy reopening, unlike some others like Australia which continues to shut itself down.

GBP/USD Video 12.07.21

To the downside, we could favor the US dollar if yields in America continue to drop, because it would be a “risk off move” that would find itself showing up in the Forex world as well. If we break down below the 1.37 handle, then it is likely that the market goes looking towards the 1.35 level. Another thing that is worth paying attention to is that the 1.42 level has been massive resistance multiple times on the monthly chart, so course you need to pay attention to that as a potential signal. With that being said, I think in the short term we are probably going to go more sideways than anything else, perhaps with an eye on the downside. Because of this, longer-term traders probably will not have much to do for a while, as this market limps into the middle of the summer, a notoriously choppy and sideways time of year to begin with.

For a look at all of today’s economic events, check out our economic calendar.