GBP/USD Price Forecast – British Pound Remains Volatile

The British pound initially tried to rally during the trading session on Friday, but then pulled back significantly to break down below the 1.24 level. Ultimately, the market is going to continue to go lower, and at this point in time it is suffering at the hands of a lot of concerns when it comes to the Bank of England going even further quantitative easing programs, which is all but confirmed. At this point, I like the idea of fading rallies, as the British pound looks as if it is ready to go looking towards the 1.2250 level, an area that has been important more than once over the past several months. I think at this point it is likely to continue to be very noisy, and therefore you have to look for signs of exhaustion to take advantage of.

GBP/USD Video 22.06.20

To the upside, the 50 day EMA would be an area that we could see sellers, and at this point in time it is likely that the market would look at that as a barrier, and in fact it has already shown itself to be so during the day. Ultimately, I think that the market probably continues to see a lot of headwinds and therefore I would be fading rallies as they occurred on short-term charts more than anything else right now. As far as buying is concerned, there is typically a lot of resistance between the 50 day EMA and the 200 day EMA, so you should keep in mind that we could reach all the way up to there before finding sellers again on the next bounce.

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