GBP/USD Price Forecast – British Pound Continues Grind

The British pound has initially tried to rally on Thursday but then gave back the gains to fall right back into the previous range that we have been in.
The British pound initially tried to rally during the course of the session on Thursday, but then gave back quite a bit of the gains. All things being equal, the market is sitting in a range although it certainly looks as if it is trying to break out over the longer term. The uptrend line comes into play, but so does the 50 day EMA, so I think it is only a matter of time before the buyers return. Because of this, I am looking to buy on the dips as they occur, unless of course we sliced through both that uptrend line and the 50 EMA.

One of the biggest problems right now is that yields in the bond market continue to spike in America, and that is causing major problems. That strengthens the US dollar in the short term, so we have seen quite a bit of noise in general. Looking at this chart, if we can break above the highs of the last couple weeks, which is essentially the 1.40 level, this market is free to go looking towards the 1.42 level above which is a major resistance barrier on the weekly chart. With that being the case, I like the idea of buying dips on signs of strength.
The overall attitude of the market has been bullish for some time, and I certainly do not see that changing anytime soon, but if we were to turn around and fall through the 1.35 handle, that would of course be negative and could change the overall trend for a while. We are obviously being thrown around by the bond market at the moment.