GBP/USD Price Forecast – The British Pound Bounces on Thursday

British Pound vs US Dollar Technical Analysis

The British pound bounced a bit during the trading session on Thursday as the 1.25 level has offered a significant amount of support. That being said, we are still well within the consolidation area that we have been in for a while, so I would not be surprised at all to see this market get very choppy in the short term. Ultimately, I think this is a market that is going to have to make a bigger decision, and even if the trend is to be believed, that decision will almost certainly be to go lower.

If we break down below the lows of the Wednesday session, I suspect we will be looking at a move down to the 1.23 level, followed by a move down to the lows. In that scenario, the market would more likely than not be reacting to some type of major “risk-off” type of situation. That could be the case for Friday, as the jobs number comes out of the United States.

Alternatively, if we were to break above the 50 Day EMA, then you might have an argument for the pair going to the 1.30 level. That is an area that previously has been supported, so it certainly makes quite a bit of sense that we would see resistance in that general vicinity. Breaking above the 1.30 level is what it would take for me to get bullish on this pair. Furthermore, there would have to be some type of change in the expectations of the Federal Reserve, which right now are extraordinarily hawkish. As long as that’s the case, I believe you’re still looking for signs of exhaustion to sell.

GBP/USD Price Forecast Video 03.06.22

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