GBP/USD Weekly Price Forecast – British pound testing support

The British pound fell during the week again, testing the 50% Fibonacci retracement level. That of course will attract a certain amount of attention but coinciding with that are a couple of different things such as the 1.28 handle being there which of course is a large, round, psychologically significant figure, but also we have the previous downtrend line that is acting somewhat supportive also. With this, I believe that we will probably see the market find buyers rather soon, ultimately, I do believe that we have seen enough selling pressure in this pair over the longer-term that eventually the bridge pound will turn around and change the entire trend. However, that is a very messy turn of events, as it typically is. The fact that the Brexit is going on isn’t helping things either.

GBP/USD Video 18.02.19

I know many of you will think that it’s foolish to think we have seen a bottom in the British pound, (which is at 1.20, not the recent low) but quite frankly markets tried to anticipate moves. At this point, it’s not that the British pound can go lower, it’s that it won’t make a fresh, new low. Enough with the doomsayers, the United Kingdom will exist in 10 years. After all, this is a phenomenon that you see in markets quite often. Do you remember in December 2017 when Bitcoin was “going to the moon?” That is a typical mania, which can work in both directions, that you see in financial markets time and time again. There is nobody left with big money to sell the British pound for more than a quick set up. The British pound is not going to parity against the US dollar, not with the Federal Reserve being as soft as it is. Beyond that, British economic numbers have been amazingly resilient. I’m looking for opportunities to go long.

Please let us know what you think in the comments below