GBP/USD Price Forecast – The British Pound Looking for Support

The British pound has pulled back a bit during the trading session on Thursday, as the 1.25 level has attracted a certain amount of attention but quite frankly at this point it does look a bit parabolic. I don’t necessarily think that the market is going to melt down or anything like that, but the reality is that money continues to flow into the treasury markets, as the demand for US dollars will rally as a result. I do think there is a significant amount of support though, so if you are looking to short the British pound, you may wish to do against other currencies from a structural standpoint. I do think that we probably break down a bit from here, but I also see a ton of support between here and the 1.2250 level, so it makes this particular short a bit difficult.

GBP/USD Video 17.04.20

The 1.25 level attract a lot of attention, but we are at the 61.8% Fibonacci retracement level and of course the 50 day EMA is slicing through the same area. What it’s worth noting is that the 200 day EMA offered quite a bit of resistance, so the question now is whether or not we can break above there? I don’t think it does in the short term though, because there are far too many concerns out there. Expect a lot of choppiness and noise in this pair, I think we are simply waiting to see how drastic the lockdown in the United Kingdom will be.