GBP/USD Price Forecast – British pound rallies against US dollar

The British pound has rallied significantly during the trading session on Friday, mainly because although it isn’t as strong as the move on Thursday, it is a continuation and a fresh, new high on the hourly chart. Because of this, I think it’s likely that the more hawkish than expected statement coming from the Bank of England will continue to push the British pound a bit higher. That’s not to say that it’s going to be an easy move, and certainly we will have the occasional pullback. I believe that the 1.32 level will be crucial, and if we break down below there, then we could start selling off again.

Overall, I think that this market is in the midst of trying to figure out is next major move, but with the impulsivity that we have seen lately, it does suggest to perhaps a recovery of the British pound is coming. I would anticipate significant resistance near the 1.3350 level, the 1.35 handle, and several other levels above there. It’s going to be very choppy and noisy, but if we can stay out of geopolitical trouble, we could see the British pound continue to strengthen over the longer-term. On the other hand, if we continue to see concerns about geopolitical trade, that could work against the British pound, as it is a bit more sensitive to risk than the US dollar.

GBP/USD Video 25.06.18

This article was originally posted on FX Empire

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