GBP/USD Forecast: Breaks Above Short-term Resistance

I’m not holding my breath one way or the other because I think the only thing you can count on is a lot of volatility, and I think Friday will probably be a lot better because US companies are offline. GBP/USD continued to show signs of strengthening on Thursday as we continue to see the US dollar weaken. At the end of the day, this is the pair that makes the bigger move and as we approach the top of the resistance barrier, it will be interesting to see how this plays out. After all, you have a lot of inflation in the UK and inflation is starting to come down a bit in the US. The risk component can also come in here. Advertisement Think you’ve got what it takes? Start trading now! If there is a break above the 1.22 level, I think there is a good chance that this market will really go higher, maybe reverse the trend completely. In this scenario, my goal would be 1.25. On the other hand, if we reverse and break below the 1.20 level, we can go back to the 1.18 level to find buyers in this area. I’m not holding my breath one way or the other because I think the only thing you can count on is a lot of volatility, and I think Friday will probably be a lot better because US companies are offline. Counting back and forth One thing I think you can count on is a lot of back and forth because frankly there are so many different people who are focused on so many different things. Remember that the UK is likely to be in a 2 year recession according to the Bank of England, so it’s hard to be too aggressive on GBP, but price is all that matters right now. If it goes higher, you have to follow, at least until the market tells you to go the other way. While the fundamentals will give you an idea, the reality is that the market does what it wants and right now it looks like it is trying to break the 1.22 level and go higher. I need to see a daily close there before I give him the „all clear” to start investing my money. Looking at this chart, we are at a make or break point.

Steve Walker

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