GBP/USD Price Forecast – British Pound Has Noisy Day as MPC Announces TaperingThe British pound has been very noisy on Thursday as the Monetary Policy Committee announced that it was going to taper some of its bond purchases.
The British pound has gone back and forth during the trading session on Thursday as the Monetary Policy Committee has come and gone, suggesting that tapering is coming in the bond market. That of course is bullish for the British pound, but at the same time we have been locked in a lot of support and resistance in this general vicinity.
GBP/USD Video 07.05.21
When you look at the 50 day EMA, has offered a bit of support as of late, so that is something worth paying attention to. Furthermore, we have the double bottom underneath there that continues to support the market as well. It is not until we break down below there that I think we could start to see the first “cracks in the ice” of the uptrend but if you are a seller, you then need to worry about the 1.35 level underneath which is attracting the 200 day EMA. Underneath there, then obviously the trend is done.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
To the upside, the 1.40 level continues to be like a “brick wall for the market” and breaking above there on a daily close would be a massively bullish sign. In the short term, I think we simply go back and forth in the fact that we have the jobs number coming out on Friday certainly makes quite a bit of sense. Ultimately, this is a market that is been very volatile for the session, but it seems to have been little changed. Interesting to see this reaction, but at the end of the day I think people almost immediately turn their attention on the employment situation in America.
For a look at all of today’s economic events, check out our economic calendar.