Forecast for the currency pair GBP / USD

Today we will take a look at the GBP / USD currency pair.

During the European trading session, we observed a moderate strengthening of the currency pair which caused a a breakthrough of the technical resistance level at 1.2125. I would like to draw your attention to the fact that this level was formed in March of this year. However, demand above this level remains very weak, thereby increasing the risk of a further selloff to the level of 1.2000.

Trading outlook:

The main scenario.

Until the quotes return above 1.2140, the bearish scenario remains a high probability and the quotes may return to 1.2000.

Alternative scenario.

If the resistance level of 1.2140 is broken, it may activate the bullish scenario and the likelihood of further gains will increase. We may see the quotes reach the level of 1.2230.

I want to point out the lack of important macroeconomic publications due out today from Britain and the USA, so trading activity may remain moderate. I also note that on Tuesday a report on the employment market from Britain will be published. The release data weaker than expected may put pressure on the GBP and the currency pair overall.

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