GBP/USD Price Forecast – British Pound Continues to Consolidate of Measures

The British pound has rallied a bit during the course of the trading session on Wednesday but continues to stay in the same tight range that it has been in for a while. Because of this, the market is likely to continue to wait out around this area with the jobs number coming. With that being the case, the market is likely to continue to look at the 1.40 level above as a significant barrier that will be difficult to overcome. If we do get above there though, it would obviously open up a potential move towards the 1.42 level, an area that has been even more resistive over the last several months.

GBP/USD Video 06.08.21

To the downside, if we break down below the 50 day EMA it is likely that we go looking towards 1.37 level. The 1.37 level of course is an area that features the 200 day EMA and previous support. With that in mind, the market will more than likely have to see some type of shift in the attitudes to make the breakout or breakdown happen. If and when that happens, it is very likely that the market will then make a longer-term move, something that we can hold onto. In the meantime, it appears that the market will continue the same messy and choppy behavior, which would not be a huge surprise due to the fact that the time of year is relatively quiet most of the time anyway. With that being the case, we will have to reassess everything after the Friday close to put some money to work.

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