GBP/USD Weekly Price Forecast – British Pound Testing Major Resistance Barrier

The British pound initially pulled back during the week but then shot towards the 1.25 handle. We continue to see this area as a major resistance, and if we can break above there obviously it should pick this market much higher, perhaps sending it towards the 1.27 level, possibly even the 1.30 level given enough time. Ultimately, this is a market that looks as if it is trying to break out and therefore that something that you should be paying attention to.

GBP/USD Video 13.04.20

It should be noted that the Federal Reserve is kicking off a $2 trillion stimulus package yet again, so that of course could have a massive influence on where we go next. After all, if the US dollar continues to lose strength and the market certainly suggests that we could see that relatively soon, the British pound should rise right along with other currencies such as the Australian dollar. I do see a “hard ceiling” at the 1.30 level above so I don’t necessarily think that it’s going to be easy to break above that level. On the other hand, if we rollover again then it’s likely that we will go down to the 1.2 to area underneath. At this point in time, it certainly looks as if the buyers are starting to press the issue. If we were to turn around a break down below the 1.22 handle, then it’s likely that we go looking towards 1.20 level. A break down below there could really unwind this pair.