GBP/USD Price Forecast – British Pound Slowing Down

The British pound has gone back and forth during the trading session on Monday, as we are starting to see a little bit of gravity come into play against many other currencies against the US dollar. The US dollar is undoubtedly oversold, so it would make sense to see a bit of a pullback. The 1.2750 level has been an area that been important more than once, so it would make quite a bit of sense that it might be an area where sellers come back in, or at least profit-taking comes into play.

GBP/USD Video 09.06.20

The 200 day EMA sits just below, and if we break down below that 200 day EMA then the market goes looking towards the 1.2450 level which is close to the 50 day EMA. Ultimately, this is a market that should continue to be very noisy, and quite frankly it is a bit perplexing as to why the British pound has been rallying, but at the end of the day it has been so the reality is that price is price, and you need to follow it. If we can break above the 1.2750 level, then it is likely that we go looking towards 1.30 level.

On the other hand, if we were to break the 50 day EMA than that will open up a fresh wave of selling but it is obvious to me that the markets have been extraordinarily “risk on”, and as a result the US dollar has suffered a bit. However, the way the market closed on Friday was a bit suspicious so we will have to see how deep any correction would be.

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