GBP/USD Price Forecast – British Pound Continues to Grind Sideways

The British pound has gone back and forth during the course of the trading session on Tuesday, as we continue to struggle with the 1.3750 level. This is an area that has been important more than once, and the fact that the 50 day EMA sits just above there also causes a bit of a headache for those who are bullish. As things stand right now, we have seen a slight micro double bottom, and the question now is whether or not that hold? If it does not, then we will probably revisit the bottom of the overall range down at the 1.35 handle. The 200 day EMA sits just below there, and it could offer a bit of support as well if it reaches the same area.

GBP/USD Video 14.04.21

On the other hand, if we were to take out the 50 day EMA to the upside on a daily close, that could send this market much higher, reaching towards the 1.40 level. That is an area that has been resistance previously, so if we struggle in that area I would not be hugely surprising. On the other hand, if we were to break above that level it opens up the possibility of a move towards the 1.42 level. That is an area that is extreme resistance, and of course has been where we have seen quite a bit of pressure. If we break above there, it opens up another 300 points to the upside. In general, I think what we are going to see is a lot of noisy behavior, but it certainly looks as if we may have to test the bottom of the overall support range.

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