GBP/USD Price Forecast – British Pound Runs Out of SteamThe British pound rallied significantly on Thursday but ran out of steam as the jobs number came out much better than anticipated in the United States.
The British pound has shown itself to be rather resilient over the last several days, but during the Thursday session the market seem to have run out of steam just above the 1.25 handle. Because of this, it is very likely that we will test the 50 day EMA underneath, and at this point it is also very likely that the candlestick is giving us a bit of a “heads up” when it comes to the fact that the British pound may or may not be able to continue going higher. At this point, we had been in a short-term pullback from what has been a rather impressive rally over the last couple of months. However, there are still a whole plethora of issues surrounding the British pound and the British economy so that is something that should be paid attention to.
GBP/USD Video 03.07.20
Looking at the UK economy, it is in a bit of a shambles, and although we did get some relief for the Pound over the last several days, the reality is that they still have to worry about Brexit, the coronavirus situation being worse in Britain than it is other places, and of course the fact that some towns are having to roll back some of the opening that recently has happened. With that being the case, it is likely that the market will continue to shun the British pound from a longer-term fundamental perspective. Furthermore, we are between the 50 day EMA and the 200 day EMA, an area that quite often causes a lot of support or resistance when we get there.
For a look at all of today’s economic events, check out our economic calendar.