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GBP/USD Price Forecast – The British Pound Continues to Find Buyers

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British Pound vs US Dollar Technical Analysis

The British pound has initially fallen during the trading session on Thursday but continues to find buyers near the 1.22 level. Because of this, it looks like we are going to pressure the upside, and what I think at best will be thought of as a “bear market rally.” The 50 Day EMA is currently sitting just above the 1.25 handle and sloping lower. Because of this, it’s very likely that we will continue to see a lot of volatility and pressure above, and therefore I think it’s only a matter of time before we get an exhaustion candle that we can start selling.

However, in the short term, it looks like the British pound is going to continue fighting, and therefore it’s likely that we will continue to see a lot of noisy behavior, and in this environment, you will be better served to be cautious with your position size. The 1.20 level underneath will be a massive floor, and if it somehow gets broken, the British pound is probably going to break down to the 1.18 level, followed by the 1.16 level.

The alternate scenario is that we finally break above 1.26, and rally to the 1.30 level. It is at the 1.30 level that the longer-term trend gets defined and could change on a breakout above there. If that would happen, obviously the British pound would be in a bull market, but we are a long way from there. Keep in mind that the Federal Reserve continues to tighten monetary policy, so the US dollar will continue to strengthen overall. We are in a downtrend, that something that you need to keep in mind.

GBP/USD Price Forecast Video 24.06.22

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This article was originally posted on FX Empire

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