GBP/USD Price Forecast – British pound rallies significantly

The British pound has rallied a bit during the trading session on Friday, reaching towards the 1.2750 level, an area that extends all the way to the 1.28 level as far as resistance is concerned. I do believe that eventually this market will roll over, somewhere between here and the 1.28 level as there are far too many issues out there to be worried about when it comes to the Brexit and of course all of the nonsense that goes along with that.

GBP/USD Video 10.06.19

Looking at the chart, you should also keep in mind that the US dollar has taken a bit of a bashing in general as Jerome Powell has suggested that perhaps the Federal Reserve is willing to cut interest rates or some other type of quantitative easing. Looking at the chart, it’s possible that the first sign of exhaustion will probably attract a lot of selling pressure. Ultimately, this is a market that breaking above there would be rather strong, perhaps reaching towards the 1.30 level where I think we see even more resistance.

Until something changes with the Brexit situation, it’s very unlikely that the British pound can take off to the upside for a longer-term move. This market continues to be erratic and news driven, but quite frankly we are still in a downtrend so you should never forget that. Having said that, we are bit oversold so don’t be surprised with the occasional pop higher.

Please let us know what you think in the comments below