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

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit during the training session on Monday to show signs of life, but at this point, it looks as if we have quite a bit of noise to chew through. With this being the case, I don’t have any interest in trying to get too cute with despair, as I think we are just simply killing time at the moment. The market will continue to be very noisy, with the 50 Day EMA sloping lower end just above current consolidation.

If we break down below the lows of the last couple of sessions, that could open up a move back down to the 1.23 level, possibly even further. The market will obviously move back and forth with risk appetite and interest rates, which right now seem to be taking a bit of a breather. We are still very much in a downtrend though, so I still favor the downside, but it’s obvious that the market is not ready to do anything at the moment.

If we do break above the 50 Day EMA, then it’s possible that we could go to the 1.30 handle, where we had seen a lot of support in the past. That should be resistance going forward, so therefore you need to pay close attention to that area. If we can break above there, then the entire trend will have changed. That being said, it’s very unlikely that we will see that happen, so I still favor fading rallies as they occur, but it’s obvious that we have nowhere to be at the moment.

GBP/USD Price Forecast Video 07.06.22

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