GBP/USD Price Forecast – British Pound Continues Consolidation

British Pound vs US Dollar Technical Analysis

The British pound has fallen a bit during the trading session on Wednesday as we continue to see a lot of noise in this general vicinity. The 50 Day EMA sits above and is dropping. The market is likely to continue to see a lot of noisy behavior in this general vicinity and will have to make a decision as to where we are going long term. For what it is worth, the market is in a downtrend and therefore I prefer shorting.

If we break down below the 1.25 handle, then it’s likely that the market will more likely than not go much lower, perhaps down to the 1.22 level. After that, then the 1.20 would be targeted as it is a large, round, psychologically significant figure. Quite frankly, it is more likely than not that area should offer quite a bit of a fight, just due to the psychology involved in it. On the other hand, if the market were to break above the 50 Day EMA, then it’s likely that we go looking to the 1.30 handle above.

The 1.30 handle above is previous support, so I would anticipate a bit of “market memory” in the area to jump into this market and cause quite a bit of resistance. At this point, the market is more likely than not going to have to determine whether or not we can break above there. If the market were to break above the 1.30 level on a daily close, that point I would have to look at this as a potential trend change, but right now it certainly does not look likely to be the case anytime soon.

GBP/USD Price Forecast Video 02.06.22

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