GBP/USD Price Forecast – British Pound Gives Up Gains Again
The British pound has initially tried to rally during the trading session on Thursday but gave back gains to break down towards the 1.38 handle. This is an area that of course will continue to attract a lot of attention, as it has seen support form over the last several days. Whether or not we break down is a completely different question, but if we break down below the 1.38 handle, then I think we go looking towards the 200 day EMA, followed by the 1.37 level.
GBP/USD Video 17.09.21
If we rally from here, then I think we’re going to continue to see a lot of noise near the 1.39 level, as it is an area that has been a lot of resistance recently. If we were to break above the 1.39 level, then it is possible we could go looking towards 1.40 handle. The 1.40 handle is an area that if we can break above it, the market goes much higher, perhaps reaching towards the 1.42 level. Looking at this chart, it suggests that we do have a certain amount of questions being asked in this general vicinity, and therefore I think you can count on volatility more than anything else. The 50 day EMA is also in this area but is flat, so it suggests that there is a lot of indecision.
All things been equal, I think the US dollar is about to get a bit of a boost, due to the fact that it is one of the few economies that seem to be humming right along, at least when it comes to the major currencies.
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