Forecast on the GBP / USD currency pair

Today we will take a look at the GBP / USD currency pair. The publication of unexpectedly weaker inflation figures out of Britain put significant pressure on the GBP, causing losses against the USD. A break of the 1.2220 support level will increase the risk of a further fall to the level of 1.2080.

Trading Outlook:

The main scenario.

Let me point out that a breakthrough of the pair over the resistance area of 1.2220–1.2240 will indicate strong buying interest. So unless the currency pair falls below 1.2220, there is still a risk of further growth towards 1.2640.

Alternative scenario.

If the price falls below the support level of 1.2220 it will cancel the main scenario, and cause further selling pressure on this currency pair

I’ll draw your attention to the parliamentary hearings report on monetary policy from the Bank of England. At this moment, I expect an increase in GBP trading activity and the pair as a whole.

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