GBP/USD Weekly Price Forecast – British Pound Testing Major Level

The British pound has rallied a bit during the week, crashing into the 1.30 USD level. However, we have not been able to break above it quite yet, as it is a large, round, psychologically significant figure that seems to be attracting a lot of attention.
Christopher Lewis
GBP/USD weekly chart, November 04, 2019

The British pound has rallied a bit during the week but continues to struggle with the 1.30 level as resistance. That large, round, psychologically significant figure will continue to attract a lot of attention, and therefore it should be paid attention to. So far, the market has not been able to break above there, and there does seem to be a lot of noise all the way up to the 1.33 level as well.

GBP/USD Video 04.11.19

To the downside, the market should have plenty of support right around the 1.27 level, as we have seen on the daily chart and of course the 50 week EMA is starting to dance around that level as well. The 1.25 level underneath would be bullish and supportive as well, due to the psychology involved in that figure. At this point in time, the British pound should continue to go higher over the longer term, as Brexit headlines continue to look more favorable. That being said, if we get some bad news out of that scenario, we could see the British pound get hammered.

That being said though it looks as if the market is starting to price in the idea of Brexit having some type of deal, and that should be positive for this market. The Federal Reserve is on hold, and the Bank of England looks likely to do the same as a Brexit deal could take some of the pressure off of the central bank to start cutting rates.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.