The GBP/USD currency pair has gone back and forth during the trading session on Thursday as we continue to see the 1.20 level offer quite a bit of resistance. By doing so, the market looks as if it is more likely than not going to struggle with the 1.20 level again, as we have seen three separate attempts to break above there, and all three of them have failed.

However, you have to pay attention to the fact that the British pound did recover a bit during the trading session, so it looks like it’s got at least a little bit of fight left in it. If we can clear the 1.2050 level, then I believe that the British pound is going to be a bullish currency, at least for the short term. If we break above there, then the market is likely to look to the 50 Day EMA, which is sitting right around the 1.23 level. At that point, I would expect to see even more significant selling pressure.