GBP/USD Price Forecast – The British Pound Continues to Consolidate

British Pound vs US Dollar Technical Analysis

The British pound has drifted a bit lower during the trading session on Friday as we continue to consolidate just above the 1.25 level. Based on the reaction that we have seen in the United States after the jobs number, it’s obvious that the market seems to be paying the most attention to interest rates than anything else. As interest rates rose in the United States a bit, does make sense that the US dollar got a little bit of a boost as well.

The 1.25 level is an area that a lot of people will pay close attention to, so it is worth noticing whether or not we can hold it there. If we break down below the lows of the week, I think it opens up quite a bit of selling pressure, perhaps opening up the British pound for a move down to the 1.22 handle. However, the 1.2650 level above is a significant resistance barrier, so I think it’s going to be difficult to get above there, not only due to the fact that it has sold off so drastically from there in the last couple of days, but the fact that any rally at this point seems to be sold into. The 50 Day EMA sits just above and is shrinking lower, so I think that also offers a certain amount of dynamic resistance as well.

The only thing that would get me buying, and even then only for a short amount of time, would be as if we could take out the 50 Day EMA. I think that could open up the British pound for a move to the 1.30 handle bomb, but I also recognize that it would be a countertrend rally more than anything else.

GBP/USD Price Forecast Video 06.06.22

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