GBP/USD Price Forecast – British Pound Continues to Find Ceiling

The British pound continues to struggle with the idea of the 1.25 handle, as the market has shown itself to be overly resilient in that region. Ultimately, I like the idea of fading this market as it rallies, as the British pound will continue to suffer at the hands of a less than stellar economy in Great Britain, and of course the fact that the United Kingdom is a lockdown much longer than the United States. Eventually, that will catch up to the British pound.

GBP/USD Video 30.04.20

The 50 day EMA is slicing through the top of the candlestick for the past couple of sessions and that of course is something to pay attention to as well. Ultimately, this is a market that I think at the very least will go down towards the 1.23 handle, possibly even the 1.2250 level underneath there. A breakdown below that level opens up the door to the 1.20 level which I do think that happens given enough time.

After all, the treasury market in the United States continues to attract a lot of inflow, which of course demands US dollars. All things being equal, I do believe that the US dollar will eventually flex its muscles again, despite the fact that the Federal Reserve is going out of its way to try to kill the currency. Do not forget, once this insanity about the lockdown is over, the UK still needs to negotiate the terms of dealing with the European Union, as the Brexit mess has not gone away. Fading rallies will continue to be the way I trade the British pound now that we had gotten so far to the upside.