Advertisement
Advertisement

GBP/USD Price Forecast – British Pound Continues to Bounce Around Same Level

By:
Christopher Lewis
Published: Jun 17, 2020, 14:43 UTC

The British pound has gone back and forth during the trading session on Wednesday as we continue to see a lot of noise in this pair.

GBP/USD

The British pound has dropped a bit during the trading session on Wednesday but has stayed in a relatively tight range. Ultimately, this is a market that is going to continue to see a lot of noise, but at the end of the day I believe that the market bouncing around between the 50 day EMA and the 200 day EMA is a sign that we just do not know where to go yet. If that is the case, then it is likely that the market will continue to see chop and noise. Ultimately, this is a market that will continue to be very tight, but eventually will get an impulsive candlestick that could lead us to a couple of different levels.

GBP/USD Video 18.06.20

To the downside, if we break down below the 50 day EMA, then it is likely we go looking towards the 1.2250 level underneath. To the upside, if the market were to break above the 200 day EMA it is likely that we could go looking towards 1.2750 level. Ultimately, this is a market that should continue to see a lot of noise in, because quite frankly the market should continue to see a lot of concerns when it comes to the British economy, the British re-opening, and then of course the general attitude of risk appetite globally. After all, if the market gets with of global growth disappearing, it is likely that the US dollar will be bid to the upside, as the market continues to see a lot of skittish behavior out there.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement