GBP/USD Price Forecast – British Pound Breaks Down
The British pound has fallen during the course of the trading session on Wednesday, showing signs of weakness yet again. That being said, we have turned around to show signs of support near the 1.3550 level, but we are still in a longer term downtrend in general, and therefore it would not surprise me at all to see selling jumping in this market yet again. The volatility is going to continue to be a major issue here, but as you can see the highs continue to get lower, and of course the lows are as well.
GBP/USD Video 07.10.21
We had recently broken down below a descending triangle, and therefore it is likely that we continue to go much lower, perhaps testing those lows again, especially as we have the jobs number coming out on Friday. Ultimately, the market is likely to continue to see plenty of noisy behavior, but I think this is emblematic of the plethora of concerns around the world right now. After all, money comes flooding into the US dollar in times of fear, especially as the bond market become so attractive.
Looking at the chart, if we were to break above the highs of the Tuesday session, then it is likely that we could go looking towards the 200 day EMA above which sits right at the 1.37 level. It is worth noting that the 50 day EMA is trying to cross below the 200 day EMA in forming the so-called “death cross” that a lot of longer-term traders pay close attention to. All things been equal, this is a market that I still prefer shorting over the longer term.
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