GBP/USD Price Forecast – The British pound tests major resistance

The British pound rallied significantly during the trading session on Thursday, but as you can tell has run into a significant amount of resistance. That being the case, it’s very interesting to see what happens next but ultimately it makes sense that we could go back and forth.
Christopher Lewis
GBP/USD daily chart, June 21, 2019

The British pound has tested major resistance above but has given back a bit of the gains. That being the case I think that the market is going to continue to consolidate in the same area, as the original push higher due to the Federal Reserve becoming a bit softer is probably overdone considering that we still have all of the issues with the Brexit. This was more or less the excuse that the pair needed to bounce from the 1.25 handle, and now it appears that the 1.2750 level has offered enough resistance to keep this market in the same range that I have marked on the chart.

GBP/USD Video 21.06.19

However, if we were to break above the 1.28 level that could send this market much higher, perhaps to the 1.30 level. I don’t necessarily think that’s going to happen, but I do recognize it as a potential move. The 1.25 level underneath should offer plenty of support though, so overall it’s likely that we simply stay in the same range that we have been in for some time. Beyond that, we have conflicting scenarios here, as the Brexit where’s upon the British pound, but at the same time the Federal Reserve will whereupon the US dollar. If that’s going to be the case, then this is a market that will be very choppy and difficult to trade for anything more than range bound short-term markets. That being said, it’s not until we get clarity, probably towards the end of the summer that this pair can make a large moves.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US