GBP/USD Weekly Price Forecast – British Pound Touches 200 Week EMAThe British pound has rallied significantly against the US dollar yet again this week. We are running into a little bit of trouble at the 200 week EMA.
The British pound has shot straight up in the air during the week, testing the 200 week EMA, and perhaps even more importantly the 1.3150 level which with my longer-term target. In fact, it hit that level much quicker than I anticipated, as I thought this was a story for a couple of weeks from now. That being said, the market is likely to continue to see upward momentum overall, but I would like to see some type of pullback in order to find a bit of value.
GBP/USD Video 03.08.20
That is probably something you will have to buy off of the daily candlestick, so at that point we could then push higher. Overall, this is a market that I think eventually will find a reason to go higher, but at this point in time we are a bit overdone. I simply cannot feel good about buying up here as its “chasing the trade”, something that I refuse to do. In fact, as soon as I stopped doing that, I started to become a profitable trader.
I think that the 1.30 level at the very least needs to be retested, but a move down to the 1.2750 level would also be very possible. Longer-term, this is a market that I think eventually gets its way towards the 1.35 handle and then could make an even bigger longer-term “buy-and-hold” type of move. However, we still have to deal with Brexit down the road, so I believe that the British pound still has very rocky moves ahead of it.
For a look at all of today’s economic events, check out our economic calendar.