GBP/USD Price Forecast – British Pound Continues to Face Resistance

The British pound has initially tried to rally during the trading session on Monday to kick off the week but as you can see has given back quite a bit of the gains. By doing so, the market is likely to continue seeing a lot of volatility as we are sitting on top of the 200 day EMA. It looks as if there is a thick wall of selling pressure above at the 1.2650 level that extends about 100 pips to the upside. At this point, if we break back down below the bottom of the previous daily candlestick, that could send this market looking towards the 50 day EMA. All things being equal though, we have been making “higher lows”, so it is a bit difficult to short this market without some type of catalyst.

GBP/USD Video 14.07.20

To the upside, if we were to break above the 1.2750 level that would more than likely go looking towards the 1.30 level given enough time. That is a large, round, psychologically significant figure that a lot of people would be paying attention to, so it certainly is worth noting. Overall, I think that this is a market that will continue to see a lot of volatility, but at this point to me it looks like we are going to see a lot of decisions being made. With this being the case, I think that the market probably is going to continue to be very noisy in general, as the British pound has to deal with Brexit and many other things.

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