GBP/USD Price Forecast – The British Pound Has Run Into Resistance, Again

The British pound continues to be stubbornly bullish, but it also continues to see a lot of resistance near the 1.2250 level, an area that clearly looks as if it is going to cause some issues. At this point, the market looks as if it is trying to figure out what to do with the longer-term trend, but it should be noted that quite frankly the British pound is decidedly negative and even though we have had a couple of strong days, the reality is that we are approaching the bottom of the previous consolidation area, and that quite often causes a bit of selling.

GBP/USD Video 21.05.20

The British pound breaking below the 1.22 level would kick off fresh selling in my estimation, perhaps another attempt at the 1.20 level. Rallies at this point continue to be sold into so far, but that does not necessarily mean that we cannot be very noisy in the process. I anticipate that the 50 day EMA above is going to continue to cause major issues, and therefore I would anticipate that the sellers come in near that region. At this point, the trend is firmly ensconced in this pair, and quite frankly there are a whole list of problems in the United Kingdom that could cause the British pound to sink on its own, not the least of which of course is going to be the Brexit issues. Furthermore, Great Britain has a much higher rate of coronavirus infection than the rest of the region.