GBP/USD Weekly Price Forecast – British pound finds support again

The British pound initially fell during the trading this week but found enough support just below the 1.32 level to turn around and recapture some of the losses. We are currently in a very obvious area of support, and I think this continues to be something that traders should pay attention to. · FX Empire

Christopher Lewis

Updated Fri, Jun 29, 2018, 9:14 PM

The British pound has fallen initially during the week but has regained much of the losses below the 1.3150 level. However, there are a lot of questions right now when it comes to risk appetite in general, so that of course has an effect on this pair. The US dollar is considered to be a “safety currency”, and therefore the more worries that we get around the world, the more likely we are to see this market continue to fall. However, structurally the 1.32 region has been supportive down to the 1.30 level, so it’s likely that we will continue to see buyers in this general vicinity, perhaps trying to support this market for a move higher. However, keep in mind that there are a lot of moving pieces around the world right now, so sudden and headlines could tear things apart rather quickly.

I believe that short-term dips will offer buying opportunities, but the longer-term trader is going to need to be a bit more cautious and certainly much more patient than the short term trader. If we were to break down below the 1.30 level though, that would be very negative sign and could send this market back down to the 1.2750 level rather quickly. I believe there is a lot of trouble just waiting out there, but we need to keep our position size small so that we can deal with it. I think this market could rally but breaking below 1.30 changes everything.