GBP/USD Price Forecast – British Pound Continues to Trade in Range

The British pound has rallied a bit during the course of the trading session on Tuesday as we continue to look at the 1.32 level as support. All things been equal, I think we are going back and forth in order to carve out some type of range for the rest of the year, which I suspect is going to be bounded by the 1.32 handle and the 1.3375 level.

GBP/USD Video 22.12.21

The size of the candle is somewhat important, as we have wiped out the previous candle. Nonetheless, there was mass of selling above, so I think that any rally at this point in time will probably have to deal with quite a bit of pressure, but that does not mean we cannot get to the top of the range and the next couple of days. Whether or not we can break above there is a completely different question, so therefore I am not necessarily looking for break out. The 50 day EMA is racing to the downside and just above the top of the range, so I think it is going to be especially difficult to finally lift off.

Furthermore, I think at this point in time it is likely that we are simply going to bang around over the next couple of weeks, and therefore I think you can look at this as a potential range bound set up, but really at this point in time I think what you have to look at is whether we are closer to the top or the bottom. Right now, we are closer to the bottom and therefore I believe that we probably bounce a bit.

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