GBP/USD Price Forecast – British Pound Heading Toward Support

The British pound is falling again during the trading session on Thursday, reaching down towards the 1.37 handle. That is an area that had previously been support, so I think it is only a matter of time before it shows up as support again. Beyond that, we also have the 200 day EMA sitting just below there, so it does make a certain amount of sense that longer-term traders will be paying attention to this general vicinity overall. If we can break through all of it, then it is likely that the market goes looking towards 1.35 handle underneath, which is a large, round, psychologically significant figure. If we break down below there, then the entire trend is probably over with, and the British pound more than likely falls quite significantly.

GBP/USD Video 09.07.21

It is worth noting that the US dollar is trying to break out on the US Dollar Index, and that there is a certain amount of running towards safety during the trading session again. There was also a significant “H pattern” on the chart, and that suggests to me that perhaps we are more than likely going to continue breaking down. In fact, I do not really have a scenario in which a willing to buy this pair at the moment but would have to stand up and take notice if we can take out the highs of the week. Until then, I think the market is more of a “sell on the rallies” type of situation, as there are plenty of reasons to think that perhaps the greenback will continue to find buyers in this type of environment.

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