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Christopher Lewis
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GBP/USD

The British pound has initially tried to rally during the trading session on Thursday but gave back the gains to reach towards the 1.3850 level. The 50 day EMA sits underneath and that should also offer support, so it will be interesting to see how this plays out. All things been equal, I think this is a market that will continue to be very noisy but obviously has more of an uptrend going than anything else from the longer-term standpoint. Because of this, you may need to sit on the sidelines and wait for some type of supportive candlestick to get involved if you are not already.

GBP/USD Video 23.04.21

The 1.3750 level has been a magnet for both support and resistance as of late, and I think that will continue to be an area that most traders need to pay close attention to. With that being the case, I do anticipate that the market will pay close attention to that area, and if we were to break down below it, it could open up a move down to the 1.35 handle where the 200 day EMA is currently racing towards.

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With that being said, I do favor the upside, but it may be one of these situations where you need to let the market pull back and prove itself although it did attempt to do so during the session on Wednesday. Markets in general are very choppy, so I would not read too much into the fact that it may take a couple of days to fully get the buyers into the market.

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

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