GBP/USD Weekly Price Forecast – British Pound Slams Into Major Level

The British pound initially pulled back during the week, and then reached towards the 1.30 level above which is a large, round, psychologically significant figure. That’s also an area where we have seen aches during resistance and support in the past, so it’s not a big surprise to see that the market would pull back from there. With that being the case, if Parliament disappoints over the weekend it’s likely that the British pound will pull back rather significantly. Ultimately, this is a market that needs some type of an agreement between the United Kingdom and the European Union to get going. This is a market that could be very explosive on Monday when we open back up, as Parliament voting against the agreement through is everything back up in the air.

GBP/USD Video 21.10.19

A break above the 1.30 level could open the door to the 1.32 level, but quite frankly the risk to reward ratio just isn’t there anymore. A pullback is necessary to find value at this point, and therefore a bit of patience may be necessary to trade this market. This looks very likely to be a market that will continue to be influenced by the occasional headline and therefore it’s going to be very difficult to put on a meaningful position size. Slow and steady wins the weight, but if we can break above the 1.32 handle, and clear all of that noise it could be a nice longer-term “buy-and-hold” scenario.

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This article was originally posted on FX Empire

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