GBP/USD Price Forecast – The British Pound Breaks Above the 50 Day EMA

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit during the trading session on Monday to break above the 50 Day EMA. By doing so, the market looks as if it is trying to break out to the upside for a much more substantial move, but there are still plenty of reasons to think that we are going to see sellers above. With that being the case, I’m looking for an opportunity to start shorting again, especially as there is a decidedly negative outlook for the global markets.

That being said, interest rates in the United States have been dropping over the last several days, so that has put a little bit of downward pressure on the greenback, and the British pound has been a beneficiary in the short term. Whether or not that continues is a completely different question, but at this point, it looks like we are ready to continue seeing a lot of noisy behavior. I think that it is more likely than not only a matter of time before we see exhaustion, and that’s essentially what I am waiting on.

The market will more likely than not find plenty of resistance near the 1.2350 level, and then again at the 1.25 level. The 1.25 level looks to be massive in its applications, so I do think that it is probably just a matter of time before we would see sellers jump in at that area. Granted, that’s a pretty healthy move, but when you look at the longer-term move, it’s but a blip on the radar. At this point, I’m just looking for exhaustion to get involved and pick up “cheap dollars.”

GBP/USD Price Forecast Video for 02.08.22

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