GBP/USD – Consolidation and Choppiness Below $1.2437

Risk per trade is 0.75% and trades must be taken prior to 5 PM GMT today.

Bullish View

• Wait for a bullish price action reversal H1 timeframe and place trades once price reaches $1.2301 or $1.2230.
• Stop Loss: 1 pip below local swing low
• Adjust stop loss to breakeven once the trade is in profit by 25 pips.
• Take profit by removing 50% of trade.
• Let the trade run.

Bearish View

• Wait for a bearish price action reversal on H1 timeframe and place trades once price reaches $1.2368 or $1.2437.
• Stop Loss: 1 pip above local swing high.
• Adjust stop loss to breakeven once the trade is in profit by 25 pips.
• Take profit by removing 50% of trade.
• Let the trade run.

The GBP/USD pair is only seeing consolidation and choppiness as of now and those who trade the London session can preferably take a short scalp when price hits $1.2368. The GBP will not be falling significantly at the moment as the UK inflation rates are supporting the Pound. The state of the British economy is not that promising but still there are other currencies that have fallen more against the USD. There are no data releases of high importance scheduled today for GBP which means the choppiness will remain in the short term.

Forex Forecast

• EUR/GBP: Rabobank’s economists have predicted an edge towards 0.90 in the middle of the year.
• GBP/USD: The Pound’s movement is likely constrained ahead of the Bank of England’s (BoE) interest rate decision.
• AUD/USD: The pair will remain volatile and will see a rollover.
• EUR/JPY: Can expect more noise for the pair as Euro slams into a downtrend line.
• USD/JPY: The Japanese yen gets some strength against the dollar.
• USD/CAD: CAD performing well against the USD, leading the pair to drift further.
• GBP/CAD: The pair surged downward as the British service sector continued to be under strain
• XAU/USD: Despite declining USD, the general trend for XAU/USD is still upward.
• ETH/USD: The consolidation continues for the pair.
• BTC/USD: The hesitant market may lead to the pair’s drastic drop.

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