GBP/USD Price Forecast – British Pound Quiet During Holiday

The British pound has rallied slightly during the trading session on Monday, but I would not read too much into this considering that both the United States and the United Kingdom were away for various holidays. Furthermore, the Asian countries had various holidays going on as well, so I would not read too much into the candlestick other than it was a quiet day.

GBP/USD Video 26.05.20

Looking at the chart, it certainly looks as if the British pound is struggling a bit in general, so it makes sense to me that we do rollover given enough time. The 1.23 level above has been rather resistive, and I expect that to continue, as there are plenty of concerns out there to keep this market somewhat low. At this point, the United States dollar course will continue to be a bullish currency, due to the fact that the global economy is a bit of a mixed, and quite frankly unsettled economy at the moment.

At this point in time, I do believe that we are going to continue to see sellers, especially near the 1.23 level. The 50 day EMA is starting to race towards that area as well, so technical traders will be paid attention to it as well. To the downside, we could go looking towards 1.21 handle, and if we break down below there, I think 1.20 will be the next target, followed by 1.1750 level. At this point, I do not have a scenario in which I am looking to buy the British pound, because clearly it continues to fail every time it rallies.

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