GBP/USD Price Forecast – British Pound Continues to Consolidate Above 50 Day EMA

The British pound has rallied a bit during the course of the trading session on Wednesday to continue the consolidation of the pair just above the 50 day EMA. At this point, it looks like we are simply trying to form some type of flag or build up enough pressure to finally challenge the 1.4 level again, but I think that is an area that is going to continue to offer a lot of resistance. Furthermore, you have to keep in mind that the jobs number is coming out on Friday, so that of course is going to be more important than anything else.

GBP/USD Video 05.08.21

The size of the candlestick is not anything to be overly concerned about, and at this point in time I think we are simply going to go back and forth between now and Friday. Once we get the jobs number out of the way on Friday, we might be able to make a move, but I suspect that if we break down below the lows of the week, we probably go looking towards the 1.37 handle. The 1.37 level is an area that also features the 200 day EMA, so I think that is yet another reason to pay close attention to it.

If we were to somehow break above the 1.40 level though, that is bullish and could open up a move to the 1.42 handle. Keep in mind that level has offered massive resistance multiple times in the past, and unless something changes quite drastically, I do not anticipate that the market will be able to break above there anytime soon.

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