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GBP/USD Price Forecast – The British Pound Gives Up Early Gains

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British Pound vs US Dollar Technical Analysis

The British pound initially tried to rally during the trading session on Thursday but I gave back gains as we continue to see the 1.26 level as a major area of problems. The market has struggled to get above the 1.26 level, and it’s also worth noting that we are in a major downtrend. With that being the case, it’s likely that we will see this as a “fade the rally” type of situation. The market is obviously very noisy but given enough time I do think that we will continue the overall trend as the US dollar is the first place people run toward in times of trouble.

Yes, it’s not the end of the world but the reality is that there is a serious lack of growth globally, and therefore it would make quite a bit of sense that we would see the US dollar continue to benefit. Furthermore, we are starting to see bonds get a bit of a bed, and those of course need US dollars as well. With that type of attitude, I do think that eventually, the downtrend continues quite steadily. On the other hand, if we were to break above the 50 Day EMA, it’s possible that the British pound then could make a big move to the 1.30 handle, where the next significant fight could begin.

I have no real interest in trying to buy the British pound, at least not yet. With that being the case, the market is likely to see sellers jump back in sooner or later, so I simply wait for signs of exhaustion that I can take advantage of.

GBP/USD Price Forecast Video 27.05.22

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This article was originally posted on FX Empire

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