GBP/USD Forecast Video for 05-02-2024

British Pound vs US Dollar Weekly Technical Analysis

The British pound on the weekly chart initially tried to rally and then gave up those gains again. That being said, we’re going nowhere, basically moving sideways. And I look at the market as one that unless you’re a short-term trader, there’s nothing to do. That being said, there are a couple of areas that longer term traders will do well to watch. In particular, the 1.2750 level above I do think continues to be a major area of resistance that a lot of people will be interested in and a weekly close above there could open up a move all the way to the 1.30 level.

On the downside, if we were to break down below 1.25, it opens up the 1.23 level underneath, which has been a significant support level more than once. Ultimately, this is a pound that is looking for direction and right now it just doesn’t have any. So if you’re a short-term trader, this is a great market but if you’re a longer-term trader, this is one to watch, but really not much to do with right now.

At this point I will be watching this currency but I have found more opportunities out there worth taking. Short-term traders will continue to love this market, but longer-term traders are going to have to wait and see what happens next. Once we get that signal, it should be quite obvious and we can just straight out follow it as it will become clear. Until then, patience is the better part of valor.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE: