GBP/USD Price Forecast – British pound rallies on Friday

The British pound try to continue the downtrend during the day on Friday but bounce significantly. As I record this video we are testing the 1.33 handle, an area that has been important more than once. I think that if we get some type of exhaustion in this area, it could be a nice selling opportunity. However, I think that it’s likely that we will be reacting to the geopolitical issues and potential trade tariffs being levied around the world. The US dollar has taken on the chin during the day on Friday, but I think it’s only a matter of time before the overall downward pressure continues. This is because I thought the 1.33 level was crucial, so breaking below there it course is a very negative sign. However, if we did continue to go above 1.33 significantly, that could turn things around. I expect a lot of volatility, and quite frankly I think that the entire move that is coming comes from the move from 1.33 and which direction the next impulsive candle is.

If we make a fresh, new low, the market will than likely go to the 1.32 handle, then possibly the 1.30 level after that. Otherwise, if we break above the 1.3440 level, that could send this market looking towards the 1.35 handle and then the 1.3650 level which has been very important on longer-term charts. In general, I think that the market continues to bounce around this general vicinity.

GBP/USD Video 18.06.18

This article was originally posted on FX Empire

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