GBP/USD Weekly Price Forecast – The British Pound Continues to Find Resistance Above

The British pound has broken above the 1.25 level before pulling back a little bit. That being said, the market looks as if we are trying to figure out what to do next, because we have gotten a bit extended and the question now is whether or not the British pound can keep up the bullish pressure? The Federal Reserve is likely to do everything you can to kill the US dollar, as the dollar shortage around the world continues to cause a lot of issues. Ultimately, I think that the market will trade in a sloppy range for the time being, but it looks like we are running out of momentum.

GBP/USD Video 04.05.20

If we can break above the weekly candlestick from this week and the one from two weeks before it, the market will have broken through a minor double top and it could send the British pound towards the 1.30 level above. At this point, then we have to reassess everything. If we break down below the bottom of the candlestick for the week, we are probably going to go looking towards 1.22 handle, and then possibly even lower than that, especially if we get some type of slew of negative headlines. Ultimately, it makes quite a bit of sense that we will see longer-term traders simply sit on the sidelines and wait to see whether or not we get an obvious break in one direction or the other. All things being equal, the market is probably more of a short-term back-and-forth affair.