GBP/USD Price Forecast – British Pound Trying to Find Support at 50 Day EMA

GBP/USD Video 16.06.20

The British pound initially broke down during the trading session on Monday, breaking down to the 50 day EMA. By doing so, we have found a little bit of buying pressure in the market has turned around. However, the 200 day EMA is just above and that will more than likely cause some issues as well, so keep in mind that there will be a lot of volatility.

Furthermore, the economic figures and concerns around the world will continue to be back and forth anyway, with the latest issue being a reemergence of coronavirus infections. At this point, one would have to think there is more negativity out there waiting to happen then positivity, but the market will probably be choppier more than anything else. I do believe that eventually we will see some type of trend emerge, but right now the volatility is going to continue to be the major feature of markets in general.

With all that being said, it is crucial to be cautious about the size of your trade, but I believe that the 1.2750 level is a massive resistance barrier, because it has been important so many times in the past. The fact that we failed at that level is not a huge surprise to someone who has been watching these charts for the last several months, it has been important more than once so it makes sense that there is a certain amount of “market memory” in that general vicinity. Being stuck between the 50 day EMA and the 200 day EMA is quite common, so I think that is what we may be seen in the short term.

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