GBP/USD Price Forecast – British Pound Continues to Look Sluggish

The British pound continues to look a bit sluggish, as we simply chop around in the same range that we have been in over the last couple of weeks.
The British pound has initially tried to rally during the course of the session on Friday but gave back the gains rather quickly as we continue to see this market bounce around in the same general vicinity. The market is currently sitting just at the 1.39 region, which is essentially acting as “fair value. We have the 50 day EMA just below that also offers a bit of support, and of course the uptrend line. That being the case, the market is likely to continue to see a lot of support underneath.
However, one of the biggest problems that currency traders are dealing with right now is the bond yield situation in America which continues to get more volatile. With that being the case, it does make a certain amount of sense that the British pound cannot take off to the upside against the greenback currently, and now one has to wonder whether or not the 1.40 level is going to continue to be a major issue? Because of this, I think we have some more work to do, but this trend line that we are fast approaching could be a very interesting inflection point.
Keep in mind that the bond markets in America will probably lead everything, as higher yields in the US will continue to push this lower if it keeps up. The question at this point is whether or not the markets will continue to sell bonds and try to push the Federal Reserve into doing something? I do not know that we are quite to that point yet, so you have to look at currency pairs right now I short-term choppy.