GBP/USD Price Forecast – The British Pound Flirts With a Major Round Number

British Pound vs US Dollar Technical Analysis

The British pound rallied a bit during trading on Tuesday to pierce the 1.20 level again. This is an area that should continue to offer a lot of noisy trading, due to the fact that it is a large, round, psychologically significant figure, and of course, it is an area that has previously offered both support and resistance. Because of this, the market is going to remain choppy in this general vicinity, and therefore I think it is probably most likely a scenario where you will be paying close attention to exhaustion candles for an opportunity to short the market.

Even if we do break above this noisy behavior, the 50 Day EMA sits at roughly 1.2250, and is nose-diving. Because of this, I think it’s probably only a matter of time before either dynamic, psychological, or momentum resistance comes into play. I’ll be looking for signs of exhaustion to start shorting, as the Federal Reserve will almost certainly remain extraordinarily tight with its monetary policy.

Keep in mind that the Fed has a meeting next week, so this may be a little bit of a reprieve before that major announcement. With this, I think the market is still a “fade the rally” market, but it might be choppier than it has been as of late due to the fact that the Federal Reserve will enter a “quiet period.” Because of this, it might give a bit of a reprieve to some of the major currencies, but at the end of the day, the economic situation still remains the same, meaning that US dollar strength will probably continue going forward.

GBP/USD Price Forecast Video for 20.07.22

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