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GBP/USD Price Forecast – British Pound Continues Choppy Behavior

By:
Christopher Lewis
Published: Jun 8, 2021, 13:23 UTC

The British pound has pulled back a bit during the trading session on Tuesday, but quite frankly we are still very much in the consolidation area that we have been in for a while area.

GBP/USD

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The British pound has dropped a bit during the trading session on Tuesday as we continue to see a lot of back and forth overall. At this point time, the market looks very likely to continue the same behavior, so I think it is more or less going to be a “buy on the dip” type of market, at least until we can break out to the upside. The market should continue to be very choppy in general, as we wait to see whether or not the United Kingdom gets its complete reopening underway, and of course whether or not the US dollar continues to get hammered.

GBP/USD Video 09.06.21

If we can break above the highs from last week, that should open up the possibility of a move towards the 1.45 handle, and then possibly even the 1.50 handle after that. To the downside, if we were to break down below the 1.41 level then I think the 50 day EMA comes into the picture, followed by the 1.40 level, which of course is a large, round, psychologically significant figure that has offered resistance recently.

Keep in mind that this pair is going to continue to see a lot of noisy behavior until we make a bigger decision, but it clearly looks to me as if we are trying to break through a significant resistance barrier, and therefore it is likely that we will continue to see this as a significant challenge to the uptrend, but the fact that we have been so resilient and have been fighting for so long suggests that there is serious demand underneath.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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