GBP/USD Price Forecast – British Pound Continues to Consolidate at Lower Levels

The US dollar has strengthened against multiple currencies during the trading session, but the British pound has been a little bit of a standout. That being the case, the market is likely to continue to see a little bit of negativity, but at this point in time the 1.37 level is a significant support level, and an area where we have tested a couple of times recently. The 200 day EMA sits just below there as well, and as a result I believe that there will be significant support in that area. As a matter fact, what makes this so important is that if we break down below the 1.37 handle, then the market is likely to go looking towards 1.35 handle.

GBP/USD Video 08.07.21

You should take a look at the chart for the prism of the “H pattern” that has recently formed not only in this pair, but also multiple other pairs denominated in the US dollar. With this being the case, the market is likely to continue to see a lot of noisy behavior, but quite frankly the British pound had been so strong previously that it may be the last ones to fall against the greenback. If we turn around and break above the 1.40 level, then that would negate all of this, but at this point in time it is very likely that we will probably test the support level underneath.

That would be the 1.37 level, the 1.35 level, and breaking down below the 1.35 level would open up the “trapdoor” to much lower levels, changing the overall trend. This would take a lot of effort, but right now the charts are certainly threatening this possibility.

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