GBP/USD Price Forecast – British Pound Falls Against US Dollar Again

The British pound fell a bit against the US dollar during trading on Thursday, as we continue to see a lot of noise in this market. The British economy is under a lot of pressure these days, and it is starting to show on the British pound finally. Quite frankly, the market has struggled at the 61.8% Fibonacci retracement level, an area that a lot of traders will be paying attention to. Furthermore, the 50 day EMA sits right here and therefore it makes quite a bit of sense that we could see that being the top of the move to the upside ultimately. Looking at the chart, if the market breaks down below the 1.2150 level, it is a straight shot to much lower levels, the first of which of course would be the 1.20 psychologically significant figure.

GBP/USD Video 15.05.20

Rallies at this point in time should continue to attract a lot of pressure, because quite frankly with the United Kingdom being completely locked down and just now trying to wake up while the United States has a bit of a head start on them is reason enough to think that the dollar will outperform, but we also have the Brexit to worry about down the road, which of course is nowhere near being figured out. In other words, there are still a lot of uncertainties when it comes to the British pound, and that will be reflected in price. If we rally, I will be looking to fade rallies, especially near the 1.2350 level. On the other hand, if we break down below that 1.2150 level, then I will just simply hold a short position until the 1.20 level.