GBP/USD Price Forecast – British Pound Continues Squeezed

The British pound has rallied a bit during the course of the trading session on Thursday to show signs of strength, but also gave back the gains rather quickly as the 50 day EMA and the 1.38 level continues offer a bit of resistance. With this being the case, think we are going to continue to squeeze between the 50 day EMA and the 200 day EMA indicators, which is quite often the case for a sideways market.

GBP/USD Video 03.09.21

The shape of the candlestick for the last couple of days have been shooting stars, so it shows just how much resistance there is above. However, if we were to break above the 50 day EMA it is likely that the British pound will take off. It is very likely that the next catalyst will be the jobs figure coming out of America, so keep in mind that there could be a lot of volatility on Friday. If we can escape one of these moving averages, then we can start to put money to work on a more serious note.

With that being the case, the very likely that we will see a lot of noisy behavior, but eventually we might get some clarity that we can get behind. In the short term, it is very likely we simply go back and forth until the market tells us what to do. Once that happens, I will become much more aggressive and get involved myself. Keep an eye on this pair as well as the US Dollar Index to figure out where to go next.

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