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Christopher Lewis
GBP/USD

The British pound initially rallied during the trading session on Monday, reaching towards the 50 day EMA. The 50 day EMA is an area that people will be attracted to and offered selling pressure during the Friday session. At this point, the market would find some trading pressure, and at this point the market has pulled back previously, and even during the trading session on Monday it looks as if we are dropping from there as well.

GBP/USD Video 23.06.20

To the downside, the 1.23 level is likely to be a target, and then after that maybe the 1.2250 level. At this point, the market would see a bit of support as we have seen both support and resistance in this general vicinity more than once. Ultimately, this is a market that is very choppy, but the British pound has a lot of factors swirling around it.

After all, we still have the Brexit to worry about and of course the economic fallout from the United Kingdom not been able to open up the way some other countries have. Furthermore, the United Kingdom was already suffering from economic stress before all of this, so ultimately, I do believe that the British pound will continue to get sold into, especially if we get some type of negative economic headwinds from global economies. As growth continues to slow, that will have people favoring the US dollar over everything else. At this point, fading the rallies continues to work.

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

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