Superior broker technology provider since 2010
+1 (315) 675 1086 | Sales@YourOwnBrokerage.com

GBP/USD Forecast: Continues to Consolidate


Despite the Fed seeing the need to stay tight, the market does not believe them, leading to uncertainty and volatility.

  • The GBP/USD rallied during the early hours of Wednesday, as the market bounces around in the same 100-point range.
  • The 1.24 level has been supported, while the 1.25 level has acted as resistance.
  • As the market remains in this vicinity, it is expected to continue experiencing a lot of noisy behavior. However, as the week progresses, there may be a move in one direction or the other.
Advertisement

image

If the market breaks out above the high from last week, it could lead to a move to the 1.26 level, and then possibly to the 1.2750 level. Alternatively, if the market breaks out below the 1.2350 level, it could head toward the 50-Day EMA, which is closer to the 1.23 level. Either way, the market has a short-term range that it is being squeezed into, and there are a couple of levels that investors should be paying attention to, as they could lead to the next significant move.

Currently, the British pound remains one of the better-performing currencies against the US dollar. However, traders are trying to figure out what the Federal Reserve will do next, which has led to a lot of speculation and noisy behavior in the market. While some traders are looking at the Fed’s monetary policy, many others are questioning whether the Fed means what it says. Despite the Fed seeing the need to stay tight, the market does not believe them, leading to uncertainty and volatility.

Sooner or later, this will have to be resolved, and it will show itself in this pair as well as many other currency pairs around the world. In the meantime, investors should pay close attention to the short-term range that the market is trading in and the critical levels that could lead to the next significant move.

TLDR; the British pound has rallied during the early hours on Wednesday as the market continues to bounce around in the same 100-point range. The 1.24 level has been supported, while the 1.25 level has acted as resistance. Traders are trying to figure out what the Federal Reserve will do next, which has led to a lot of speculation and noisy behavior in the market. However, investors should focus on the short-term range and critical levels that could lead to the next significant move. Ultimately, the market remains volatile and uncertain, and investors should proceed with caution.

GBP/USD

Ready to trade our daily Forex analysis? We’ve made a list of the best Forex brokers worth trading with.

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.


RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.


The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.


The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.



© 2009 - 2024 YourOwnBrokerage.com. All Rights Reserved.