GBP/USD Price Forecast – British Pound Pulls Back From Major Handle

The British pound pulled back a bit from the 1.25 handle, and as you can see, we continue to see a bit of negativity. The 50 day EMA above is an area that a lot of people will pay quite a bit of attention to and will define the trend for quite a few people. Ultimately, the 200 day EMA is sitting above there as well, which has offered significant resistance. Given enough time, it looks as if the British pound is ready to roll over a bit which makes sense considering that the United Kingdom is going to be locked down much longer than many of the other major economies around the world.

GBP/USD Video 21.04.20

Furthermore, the US dollar of course has a lot of interest due to the US Treasury markets and being such a hit. Ultimately, this is a market that I believe will continue to see a lot of selling pressure, as I think the 61.8% Fibonacci retracement level will also continue to be a major barrier. To the downside, I suspect that we could go down to the 1.2 to region, perhaps even lower than that, reaching down towards the 1.20 level. That’s an area that I think could be somewhat supportive, but quite frankly I can’t get my head around the idea of trying to pick up the British pound in the short term. Overall, I do think that eventually this will be a long-term “buy-and-hold” type of market, but we aren’t there yet, so therefore I continue to see selling opportunities more than anything else.