GBP/USD Price Forecast – British Pound Testing Major Figure

The British pound has gone back and forth during the trading session on Friday, reaching towards the 1.25 level, an area that of course will attract a lot of attention due to the fact that it is a big, round, psychologically important figure. Having said that, there is also the 61.8% Fibonacci retracement level in this area, as well as a downward sloping 50 day EMA. Because of this, I think there is more than enough reasons to think that this market could pull back, not the least of which would be the fact that they have started to show signs of momentum drifting lower. That means that the rate of change is slowing down, and that typically is a sign that you at the very least get a bit of a pullback.

GBP/USD Video 20.04.20

I recognize that there is a lot of noise underneath and extending down to the 1.2250 level or so. Ultimately, this is a market that I think is going to disappoint a lot of people, because quite frankly the treasury markets aren’t selling off, meaning that there is still a lot of people out there that believe that we need to safety of the US dollar. Going into the weekend, it makes sense that we do very little, but I do think that eventually we probably find the sellers coming back out, especially due to the fact that the United Kingdom is almost certainly going to stay locked down much longer than the United States.