GBP/USD Weekly Price Forecast – British pound tries to stabilize

The British pound went back and forth during the week, showing signs of indecision. We are trying to stabilize the vital 1.2750 level, an area that I said could be important if we broke down below the 1.30 level. It certainly looks as if it is trying to offer some type of support, so this point you can play this candle as a doji in my opinion. This means that if it breaks to the upside, it could represent a buying opportunity as we would almost certainly reach Ben towards the 1.30 level. On the other hand, if we break down below the bottom of it I think the market will go looking towards 1.25 level. Obviously, there is more momentum on the downside overall, but we are hovering close to not only the 61.8% Fibonacci retracement level, while simultaneously hovering around major Fibonacci levels in other British pound pairs, but we also have the psychological and structural importance of the round number at 1.275 to contend with.

While there seems to be a bit of a reprieve in US dollar strength around the world, this pair would lag anyway because of the Brexit, so in the end we need some type of resolution or at least signs of hope on a decent deal for the UK for this market to turn back around.

GBP/USD Video 20.08.18