GBP/USD Price Forecast – British Pound Testing 50 Day EMA

The British pound did try to rally initially during the trading session on Thursday but found enough resistance above the turn around a break down. As the market awaited the interest rate decision out of the Bank of England, traders sold off the British pound. There was a whisper or two of the British central bank cutting interest rates and then doing more quantitative easing than announced, but at the end of the day they came in just as expected. However, later on as they spoke to the press, they started to speak more and more of the likelihood of expanded quantitative easing so it is likely that we will see the British pound continue to fall a bit.

GBP/USD Video 19.06.20

To the upside, the 200 day EMA continues offer significant resistance, so therefore it is likely that rallies will be sold into. Quite frankly, this type of volatility is difficult to deal with, but it is the world we live in now. With that in mind, it is highly likely that we will continue to see noisy trading to say the least, not only here but everywhere else. Quite frankly, depending on the day the markets are looking at a major breakout, or just simply chopping around sideways.

With all of the massive headlines out there, I think you will continue to see an exceedingly difficult market to deal with, which volatility is probably going to continue to be the main theme overall. With that in mind, it is highly likely that we will need to keep our position size is relatively small, as there will be a lot of potential whips all trading.

For a look at all of today’s economic events, check out our economic calendar.