GBP/USD Price Forecast – British pound runs into resistance

The British pound rallied initially during the trading session but then turned around to fall significantly. We have bounced from the lows though, so I think the question is now whether or not we can break out to the upside, slicing through the 1.28 level, or are we going to continue to drop down? I suspect that the latter of the two is the most likely scenario, so if we can break down below the bottom of the range during the trading session on Friday, then the market probably goes looking towards 1.25 level again. At this point, it’s probably better to watch what happens over the next 24 hours or so, but clearly if we are going to see a lot of noise in the markets overall, it won’t be any different here.

GBP/USD Video 24.06.19

The 1.25 level underneath is a major support level, so it’s not a huge surprise that we bounced from there. Beyond that, the Federal Reserve is turning more dovish and that of course works against the value of the US dollar. However, this might be a bit of an outlier when it comes to the Forex world because we have so much in the way of noise when it comes to the Brexit. That Brexit nonsense will continue to weigh upon the British pound, so even if we do break out to the upside, you will probably make more money in profits buying something else against the greenback.

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