GBP/USD Price Forecast – British Pound Continues to Dance Between Two Major EMA Levels

The British pound has pulled back initially during the trading session on Wednesday, but then turned around to show signs of strength yet again. Ultimately, this is a market that continues to see a lot of choppy behavior, but if we can break above the 200 day EMA, roughly the 1.26 level, it could open up a move towards the 1.2750 level. That is an area that has been important more than once. However, if we were to turn around a break down below the 50 day EMA it is likely that we could go looking towards the 1.2350 level.

GBP/USD Video 09.07.20

The British pound has been a bit difficult to trade because all common sense would tell you that it should be going lower, but I think at this point it is obvious that currency traders are only focusing on the Federal Reserve, and its loose monetary policy. If that is going to be the case, it will continue to support the British pound which is seen a little bit better news coming out the United Kingdom, but it is still rather weak in general.

Furthermore, you have to worry about Brexit when it comes to trading the British pound, so that is something that also comes into play. Keep in mind that there are plenty of headlines that could cause issues for the British pound so if that is going to be the case it is only a matter of time before we get the occasional pullback. Once we break out of these couple of moving averages, then I can place a trade with a little bit more confidence.

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