GBP/USD Price Forecast – British Pound Continues to Find Same Level

The British pound has rallied a bit during the trading session on Wednesday to break above the 50 day EMA, only to turn around and give that right back up almost immediately. By doing so, it has formed a less than enthusiastic candlestick, making this a very unlikely scenario for a sudden break out. This does not mean that I think the market is going to fall apart, rather I think we have a lot of work to do before we get to the upside again. Having said that, if we were to break above the top of the candlestick from the trading session on Wednesday, that could be a very good sign.

GBP/USD Video 15.04.21

If we were to break down below the lows from earlier this week, that opens up the possibility and the high likelihood of a move down to the 1.35 handle. That is an area that is a large, round, psychologically significant figure, and also features the 200 day EMA. With that in mind, I would be very interested in buying down at that level, assuming that we get there and of course get a bit of a bounce. If we do not get that bounce, then I would be a little bit more suspicious.

Whether or not the US dollar can climb against other currencies seems to be an open-ended question, and depending on who you listen to, the answers very wildly. As for myself, I think what we are going to see is more choppiness than anything else, making it yet another headache inducing couple of months in some of these pairs. I suspect the British pound will probably be one of them.

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