GBP/USD Price Forecast – British Pound Continues to Show Volatility
The British pound has shown itself to be resilient, after initially rallying, pulling back, and then rallied again. That being said, we are most certainly in a consolidated mess, so I think we are looking at more chop going forward. That shop could be relatively useful as a determinant as to where we go next. It is worth noting that the 50 day EMA is currently getting ready to cross below the 200 day EMA, forming the so-called “death cross.” While I am personally not that big of a proponent of using that as a signal, I know enough people are.
GBP/USD Video 14.10.21
The 1.36 level continues to be resistive extending all the way to the 1.37 level, and I think that is something worth paying attention to. That being said, I continue to look at that as an area that you can be a seller of the British pound, and it is not until we clear the 1.3750 level and the two previously mentioned moving averages that I would be comfortable getting long. With that in mind, I think this is a market that will continue to grind away and perhaps exhausted itself in order to try to find lower pricing.
Going forward, I think that we need to make a bigger decision and it’s worth noting that we are banging against the bottom of a major descending triangle, and as a result it makes quite a bit of sense that we will continue to see this as a scenario where we continue to see pressure, and I do think that it is more likely than not that we pullback from this area as the markets have been so range bound lately.
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