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GBP/USD Price Forecast – The British Pound Continues to Threaten a Breakout

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·2 min read
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British Pound vs US Dollar Technical Analysis

The British pound has rallied during the trading session on Friday to show signs of strength yet again, as it looks like we are going to threaten a major breakout. At this point, the market is trying to decide whether or not it is going to stick with the Federal Reserve narrative, or if they are going to challenge the central bank. At this point, there are a lot of people out there who do not believe that the Fed will be able to tighten as rapidly as once thought, as seen in the bond markets.

The 50 Day EMA sits just above and offers dynamic resistance, so it is worth paying close attention to. If we can break above there, then it opens up the door for a move all the way back to the 1.30 handle above. That would obviously be a major move and could gather momentum rather quickly. It’s at that point that we would challenge the entire notion of a downtrend, as the market will have changed its attitude so drastically.

Underneath, the 1.25 level could be an area of support, so be advised that you should be cautious in that area. If we were to break down below the 1.25 panel, then the market could open up for a much bigger move to the downside. It would go with the overall trend, so that is something to keep in mind. Ultimately, I think this is a market that will find reasons to fall given enough time, but in the short term, we may have to have a bit of a relief rally. As I look across the Forex landscape, it’s obvious that the British pound seems to be a bit of an outlier.

GBP/USD Price Forecast Video 30.05.22

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This article was originally posted on FX Empire

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