GBP/USD Price Forecast – British Pound Gives Up Early Gains

The British pound initially tried to rally during the course of the trading session on Friday but gave back early gains as it looks like we are simply dancing around the 50 day EMA. That being said, the market is likely to continue to be very noisy, and I think what we see here is an attempt to stabilize after a major sell off. The weekly candlestick is going to be a shooting star, and that of course is something that signifies weakness. That being said, I do not necessarily think that this is a market that is ready to break down drastically, just that we are not quite ready to go higher yet.

GBP/USD Video 26.04.21

The double bottom on the daily chart is more than likely going to offer a bit of a floor the market, but even if we break down below there at think there is pretty much massive support near the 1.35 handle below, as the 200 day EMA is approaching that general vicinity. Because of this, I think it is only a matter of time before the buyers return, but at this point you clearly see a lot of weakness. At this point in time, the market is going to see a lot of choppy behavior, so quite frankly I am waiting to see whether or not we see some type of supportive candlestick along the lines of a hammer that I can get involved in. A strong and impulsive green candlestick could also get me into the market as well. As far as selling is concerned, we need to see the 200 day EMA broken to the downside.

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