GBP/USD Forecast: Continues to Consolidate

• 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

Take advantage of today's market opportunities

START TRADING NOW

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.

Be Cautious

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.

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