GBP/USD Price Forecast – British Pound Failing to Overtake 200 Day EMA

The British pound has pulled back a bit during the course of the trading session on Wednesday as we continue to dance around the 200 day EMA in a bid to try to find some type of directionality. Ultimately, this is a market that I think will continue to see a lot of noisy behavior and, but all around the Forex world I am looking at the British pound against some of the “safer currencies” looking as if it is going to roll over a bit.

GBP/USD Video 26.08.21

The candlestick from the Monday session is going to be crucial because we can break down below it, the British pound is likely to go looking towards the 1.35 handle, which is an area that has been important quite a bit. At this juncture, I believe that this is a market that is trying to figure out where we are going for the longer term, and it certainly looks as if we are struggling to go higher. In fact, it is not until we can break above the 50 day EMA on a daily close that I start to look for a buying opportunity.

Ultimately, this probably comes down to the US dollar as well, because the US dollar of course is a safety currency, and there are a lot of concerns out there when it comes to global growth. Remember that this is Jackson Hole week, so various central bankers around the world will be making statements, perhaps causing a bit of volatility from time to time over the next couple of days. Without a doubt, Jerome Powell is going to be taking center stage.

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