Yahoo Finance GBP/USD Price Forecast – British Pound Muscling Higher
The British pound has initially fallen a bit during the trading session on Monday, showing signs of weakness to kick off the trading week. However, we have turned around to show signs of strength again as the British pound has been very resilient. When you look at the Fibonacci retracement levels, the 61.8% level is also found just about at the 1.25 handle. This should offer a significant amount of resistance, and I believe that the 1.25 level will determine the next move. If we can break above it, that would actually be an extraordinarily positive sign. However, if we pull back from here that could open up a move back down to the 1.20 level. Furthermore, if the market breaks down below the lows of the trading session that would also show extreme weakness.
GBP/USD Video 31.03.20
At this point, it’s probably more about the US dollar than anything else. The US dollar got absently crushed last week, so the one question that I would have is whether or not we get some type of snapback. Having said that, with the Federal Reserve flooding the market with US dollars, that will more than likely continue to be one of the biggest hindrances to the greenback as dollar liquidity has increased significantly over the last week or so. With this, pay attention to the 1.25 handle as it should give you an idea as to whether or not this rally can continue. If it does, I would anticipate a move up towards the 1.30 level over the next several sessions.
This article was originally posted on FX Empire
