GBP/USD Price Forecast – British Pound Continues to Recover

The British pound has rallied a bit during the trading session on Thursday as we have recaptured the 1.37 level. At this point in time, it will be interesting to see whether or not we can continue to go higher, because quite frankly we have the mass of previous consolidation which is sitting right above where we are right now. When you look at this chart, you can see that we have dipped a below the 200 day EMA only to turn around and recover. Now that we have done this, it is interesting to see that we have recaptured it. Now that the market has done this, it has a lot of work to do all the way up to the 50 day EMA.

GBP/USD Video 23.07.21

At this point, it is important to watch the 10 year yield in the United States, because it is starting to roll over again, suggesting that more money may be flowing into the bond markets. That is going to be the case, then obviously it will strengthen the US dollar. If we get any type of “risk off” type of situation, it is very likely that this pair will drift lower as a result. On the other hand, if we were to turn bullish enough to take out the 50 day EMA, then it is likely that the market would continue to go much higher. With this being the case, the market is likely to continue to see a lot of noise, so I would be very cautious about getting too overexposed.

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