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

The British pound initially tried to rally during the trading session on Thursday but gave back the gains to form a bit of a shooting star shaped candlestick. We also had seen the exact same type of candlestick for the previous session, so I think at this point what we are looking at is a proclivity to sell rallies. The 50 day EMA is coming down towards the current pricing and is most certainly sloping to the downside. At this point, the 50 day EMA is sitting at the 1.25 handle. At this point in time, I like fading short-term rallies because I believe that the British pound is going to pay the price for the United Kingdom being locked down, and of course the Brexit which is still something that needs to be worked through.

GBP/USD Video 24.04.20

If we were to break down below the 1.23 handle, then I think it is likely that the market breaks down towards the 1.22 handle. Below there, then I think the bottom falls out of the market in the British pound goes looking towards 1.20 level underneath. In that area, I would expect to see a significant amount of support, simply because we have seen a lot of interest when it comes to the round figure in and of itself. The 1.20 level has historically been important so I think that would be about as low as the British pound goes in the short term. If we did break down below there, then it is likely that the market then would go looking towards 1.1750 level. Currently, I do not have any interest in buying this pair.