GBP/USD Price Forecast – British Pound Attempts Recovery

The British pound has rallied a bit during the trading session on Thursday, but it looks as if the 1.35 level is probably going to cause some issues above. That is a large, round, psychologically significant figure that will attract attention, and it is of course an area that has been important previously. Because of this, I believe it is only a matter of time before we see a certain amount of issue with trying to break above there, and as a result I am looking for the first signs of exhaustion to start selling. I do not like the idea of trying to get long of this market yet, because quite frankly I think the concern that have been plaguing the market are still very much out there.

GBP/USD Video 01.10.21

Because of this, I believe that simply waiting for signs of exhaustion will be the best way to trade this market, as the British pound is suffering at the hands of the greenback like everybody else. Because of this, it is more than likely only a matter of time before we continue the massive downtrend that we had been in. I do believe that we are about to see the so-called “death cross”, which is when the 50 day EMA breaks down below the 200 day EMA, attracting a lot of negative attention. That in and of itself is not a reason to take a trade, but it certainly will capture a lot of attention and imagination out there. Ultimately, the last couple of days previously had told us most of what we need to know.

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