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

The British pound has rallied again during the trading session on Wednesday, as we have reached towards the 1.2650 level again. There is a little bit of a “micro triple top” just above, so if we can break above that then it is likely that we go to the 1.2750 level, an area that has also been resistive. We are facing an uphill challenge here, but one thing is for sure, it seems as if the US dollar is destined to lose strength over the longer term. This does not mean that we will get the occasional pullback, that almost certainly seems to be a given. However, after forming the perfect hammer from the previous session and it makes sense that we would see a little bit of buying opportunity here, and people of course have taken advantage of it.

GBP/USD Video 16.07.20

If we can break above the 1.2750 level, then the British pound is likely to go looking towards 1.30 level over the longer term. If that does happen, then you will see the US dollar fallen against most other currencies. Most interesting is the Euro, which is suddenly finding even more bullish pressure as the Federal Reserve does everything, he can kill its own currency. With all of that liquidity out there in the fact that coronavirus numbers are starting to get worse in the United States, it has created a bit of a “one-way bet” over the last several weeks. However, that has clearly changed.

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