GBP/USD Price Forecast – British Pound Continues to Test 200 Day EMA

The British pound has rallied a bit during the course of the trading session on Monday to reach towards the 200 day EMA yet again. At this point in time, the market could break above the highs of last week, then it opens up the possibility of a move towards the 50 day EMA. At that point, then the market would have to deal with a lot of downward pressure. The market breaking above the 1.39 level would certainly open up the possibility of a bigger move to the upside, and at that point I would become aggressively long of the pound.

GBP/USD Video 28.09.21

Having said that, it is very likely that we could continue to go back and forth in this general vicinity, as we have been grinding between 1.37 and 1.3650 of the last couple of days. It certainly looks as if we are trying to build up enough momentum to go higher, but whether or not we can clear the highs from just a few sessions ago is completely different question. The 200 day EMA continues to attract a lot of attention.

On the other hand, if we were to turn around a break down below the 1.36 level, it would negate the possibility of the “triple bottom”, and it would be an extraordinarily negative sign of things to come. At that point, the sellers would almost certainly overwhelm the market and send this pair much lower. At this point time, I would anticipate that we could go down to the 1.35 handle, and then eventually the 1.30 handle.

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