GBP/USD Price Forecast – British Pound Gives Up Early Gains

The British pound initially tried to rally during the trading session on Friday but gave back the gains as we continue to see weakness in the British pound in general. Ultimately, this is a pair that has to deal with the Brexit and a lot of concerns when it comes to the British economy in general. After all, the United Kingdom has the highest death rate in the European theater, so that of course has a negative correlation to its currency and more importantly to its economy as well.

GBP/USD Video 11.05.20

Ultimately, the back and forth of the Thursday session probably sets up a short-term range, so therefore if we break down below the bottom of the Thursday candlestick then I think the bottom will fall out in the British pound. I do favor the US dollar in general, as we continue to see the rate of change favor the US dollar as we have been running out of momentum. The 1.22 level underneath is an area that is a target, just as the 1.20 level underneath will be a target after that. To the upside, I think that the 50 day EMA is going to cause a lot of resistance, as will the 1.25 level yet again. Furthermore, the 61.8% Fibonacci retracement level is an area just above the 1.25 level that could cause a lot of resistance. All things being equal, I prefer to fade any rally that we see in this currency pair.