GBP/USD Price Forecast – British Pound Continues to Drift Lower
The British pound has initially tried to rally during the trading session on Wednesday, but then gave up the gains rather quickly to start falling towards the 1.24 level. That being said, the market still has a bit of an uptrend line underneath and obviously there is a lot of bullish pressure in that general vicinity. While I am bearish of the bridge pound longer-term, the best way to trade this market has been to fade short-term rallies. Simply put, it is being increasingly stubborn about breaking down, but it has not showed itself to be extraordinarily bullish from this level.
GBP/USD Video 07.05.20
Keep in mind that the 50 day EMA is offering resistance just at the 1.25 handle, which also features the 61.8% Fibonacci retracement level. That being the case, the market looks highly likely to continue to show signs of exhaustion in this area, and as a result it is likely that short-term charts will work out quite nicely for you if you keep a negative buyers. To the downside, the 1.22 level is massive support and if that gets broken below, then we could see a lot of momentum shift to the downside. That being said, we have seen a lot of volatility, and that of course means that it is not as simple as “pressing the sell button.” Look for value in the US dollar, meaning that when we rally from a move, it offers an ability to pick up US dollars “on the cheap.”
This article was originally posted on FX Empire
