GBP/USD Price Forecast – British Pound Continues to Test 50 Day EMA to Kickoff Week

The British pound has rallied ever so slightly against the US dollar on Monday to kick off the week with a little bit of bullish pressure. That being said, the market is recognizing the 50 day EMA as being important, so with that in mind you should keep in mind that breaking above there could be a bullish sign. At that moment, I would anticipate that the market would go looking towards the 1.40 level above, which has been resistance more than once. That area will be very difficult to break above, because not only have we seen that recently act as important, but we have seen multiple times in the passwords been important.

GBP/USD Video 17.08.21

The 200 day EMA sits below at the 1.37 level, which is an area that I think will continue to be crucial support. If we can stay above that level, then it is likely that we will simply continue to consolidate, however if we were to break down then it would be a very negative sign indeed. At that point, I would anticipate that the British pound should go looking towards 1.35 handle, which obviously has a lot of psychology attached to it.

In general, this is a market that I think will continue to be choppy, especially as we are sitting in the middle of August, which has a long history of being very noisy and choppy as most of the bigger players are not focusing on the market and are more or less worried about vacation. Furthermore, there are a lot of questions as to whether or not the Federal Reserve is going to be tapering anytime soon, which drives the entire Forex market.

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