GBP/USD Price Forecast – British Pound Rallies Again

The GBP/USD pair rallied initially during the trading session on Friday, breaking above the one point tonight handle. Having said that, the market did pull back slightly and therefore it looks very likely that we will continue to see a lot of noise in this general vicinity, extending all the way to the 1.30 level. At this point, the market also features the 50 day EMA in that region, so I think it’s only a matter of time before the sellers come back. However, if we were to break above the 50 day EMA it would be a very bullish sign and could send this market much higher, perhaps reaching towards the 1.32 handle.

GBP/USD Video 06.03.20

To the downside, I think pullbacks closer to the 200 day EMA should find plenty of buyers. However, if we were to break down below the 200 day EMA on the chart it could open up a move down to the 1.25 handle. This is a market that continues to pay attention to both of the central banks, considering that the Federal Reserve has just cut 50 bps, and is likely to continue doing so. Furthermore though, the Bank of England is likely to do something as well, although there are getting to be mixed signals coming out of London.

That being said, expect a lot of volatility on Friday as the jobs number comes out to throw more gasoline on the fire that has been the volatile markets as of late. At this point, the massive amount of resistance above is going to slow down any move to the upside but that doesn’t mean that we can’t reach higher.