GBP/USD Price Forecast – British Pound Looking at Support

The British pound has gone back and forth during the trading session on Friday, as we dance around the 200 day EMA. This is an area where you would expect to see a certain amount of support due to the fact that it is where we had previously seen so much in the way of resistance.If we can break above the top of the range during the Friday trading session, then the market is likely to go looking towards 1.2750 level, possibly even the 1.30 level above. On the other hand, if we break down below the bottom of the candlestick for the trading session, then we will go looking towards the 50 day EMA underneath.

GBP/USD Video 15.06.20

Looking at this chart, we had broken out, pulled back rather significantly, and now we are testing to see whether or not there is support. Typically, there will be and the Federal Reserve doing everything he can to kill the US dollar will help. However, we previously had a hammer followed by a shooting star, typically suggesting that we are forming some type of range. Most of the time, that range will last several candlesticks.

The fact that the Thursday candlestick slice right through the bottom of it is a negative sign, but there is a lot of support just below so I think we are going to see a lot of choppy trading going back and forth, suggesting that the next couple of days could be very choppy and noisy. With that in mind though, we have a couple of areas where we see the market moving, but we have a hit those quite yet so I will have to keep you up-to-date. In the meantime, you could probably trade short-term back-and-forth range bound systems.

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