GBP/USD Price Forecast – The British pound tests major resistanceThe 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.
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