GBP/USD Price Forecast – British Pound Continues Choppy Behavior

The British pound has gone back and forth during the course of the trading session on Tuesday again, as we continue to see a lot of choppy behavior just above the 50 day EMA. All things being equal, the market is likely to see a lot of noise in this general vicinity as there is a bit of an argument as to whether or not the British economy is going to open up as quickly as once thought, and it is clear that the US economy is going to be leading the way for most of the West.

GBP/USD Video 28.04.21

The 50 day EMA underneath will course attract a lot of attention, but what is more important is the double bottom underneath. If we break down below there, then the market could go looking towards the 1.35 handle. The 1.35 handle is quickly attracting the 200 day EMA, and as a result I think a lot of longer-term traders will be paying close attention to that region.

To the upside, if we can finally break above the 1.40 handle, that will send the British pound towards the 1.42 level, and possibly even above there which would be an extraordinarily bullish sign. At that point, the British pound becomes more or less a “buy-and-hold” type of currency, much like the Australian dollar and its area near the 0.80 level. As things stand right now, it certainly looks like we are simply trying to chew up a lot of froth and figure out where the bigger picture is leading us, as the US leads the rest the world, but at the same time the US dollar is more or less thought of as a “safety assets.”

For a look at all of today’s economic events, check out our economic calendar.