Forecast of the GBP / USD currency pair

Forecast of the GBP / USD currency pair

Today let’s take a look at the GBP / USD currency pair. I'll start with a technical analysis and we see that quotes of the pair are stuck in sideways position at 1.2160–1.2240. Since the overall trend of trading is pointing downward, the risk of further weakness remains a possibility. There is no economic news due out of Great Britain that will influence this pair but from the USA there will be a range of news which is expected to come in under expectations. This may lend some support to the GBP

Given all this, we notice a bearish signal using technical analysis and a bullish signal using fundamental analysis.

Trading outlook:

A breakthrough of the technical support level of 1.2160 may cause a selloff down to the psychological mark of 1.2000. For this to happen some good news attributed to the US dollar is needed which is not expected to happen according to analysts.

An alternative to the previous scenario will be the break of the 1.2240 mark. Should this occur buyers will be faced with further roadblocks as there are several more technical resistance levels in the way.

A surge in trading activity may occur during the American session.

The above review is not a direct guide to action,but carries an exclusively recommendatory nature.