GBP/USD Price Forecast – British Pound Indecisive Heading Into the Weekend

The British pound has gone back and forth during the course of the trading session on Friday to show signs of confusion and hesitancy just above a major support region. The 1.37 level is a level that I think is going to be crucial, as the 200 day EMA is reaching that vicinity, and of course it is an area that has been supportive in the past. If we break down below the 1.37 level, then I believe that the market will go looking towards the 1.35 handle. With that in mind, a break down below that level would be like a “trapdoor opening” in the market, sending the British pound plunging.

GBP/USD Video 19.07.21

I believe that we are eventually more likely than not going to see the British pound fall, perhaps not necessarily do to anything related to the United Kingdom itself, but the simple fact that the US dollar is flirting with a major breakout in general. The Forex world is easy sometimes, because if you understand where the US dollar is going, it can give you a bit of a “heads up” as to how to trade multiple currency pairs. That being said, I do not necessarily think that the British pound is going to be the big loser out of the entire group of majors, just that it will move right along with the other ones.

If we were to see some type of bullish momentum in this pair, I would not be getting long until we get above the 50 day EMA, which currently sits at about 1.3934. If we get above there, then it would obviously be a major change in attitude but right now it just does not look likely.

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