GBP/USD Price Forecast – British Pound Hits Major Target

The British pound has gone back and forth during the trading session on Thursday as we hit the crucial 1.35 handle. This is an area that I had been talking about for a while, so the fact that we are here and have stopped is not a huge surprise to me. Question now is whether or not we can continue to go higher?

GBP/USD Video 31.12.21

If we break down below the bottom of the candlestick for the trading session on Thursday, then it is very likely that will go looking towards the 50 day EMA. Breaking down below the 50 day EMA would of course be a very negative sign and could continue the longer-term downtrend. On the other hand, if we turn around a breakout above the top of the candlestick for the session on Thursday, then that means we will more than likely go looking towards the 200 day EMA above, near the 1.36 handle.

At this juncture, I am not willing to put a bunch of money in but I am going to be paying close attention to which way we break out of this candlestick, either higher or lower. I am simply planning on following the market depending on where we go and trying to keep it that simple. The pair has been a bit overdone as of late, so in order to buy the pair I would need to see it somewhat prove itself before I actually start chasing some type of momentum. We have gotten a bit ahead of ourselves and therefore I want to make sure that I am not being the one left holding the bag at the end of the run.

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