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

The 1.37 level underneath seems to be a significant amount of support that could come into the picture for the British pound, as we not only have the 50 day EMA, but we also have the 200 day EMA right there. The market stay above there suggest that we are going to try to go higher, and the fact that we gave back early gains of course is somewhat negative, but it will be worth noting that if we can break above the 1.39 handle, it is likely that the British pound will take off to the upside for a bigger move.

GBP/USD Video 26.10.21

A lot of this is going to have to do with the US dollar more than anything else, so keep that in the back of your mind as we have seen so much in the way of volatility over the last several weeks and of course by extension, quite a bit of weakness. That being said, if we were to turn around a break down below the 1.37 handle, then it is likely we go looking towards the 1.36 level. Underneath there, then the “trapdoor” could break down and open up massive amounts of selling.

Nonetheless, this is a market continues to be very noisy, and of course choppy. We might be a little overbought at this point, but that should offer value going forward. The next couple of days could be rather choppy and noisy, but that would be nothing new considering how the markets in general have been behaving. Keep your position size relatively small, and build once we get a little bit of confirmation going forward.

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