GBP/USD Price Forecast – British Pound Looking for Buyers

The British pound has gotten slapped around a bit during the trading session on both Wednesday and Thursday, as the Federal Reserve has moved up a couple of dots on the so-called “dot plot” suggesting that they may be tapering quicker than the market had originally priced in. That being said, the Fed is nowhere near actually doing it, so I suspect that before it is all said and done, this move will have been a bit of an overreaction.

GBP/USD Video 18.06.21

This is not to suggest that we cannot go lower, we most certainly can, but at this point in time I think that the trend will stay intact unless something else happens. While it has been a bit of a selloff, the reality is that there is still a massive amount of support underneath, and when you look at the longer-term trend, this is a market that most certainly is in an uptrend. The 50 day EMA being broken below of course is a very negative sign, but it is not until we clear the double bottom underneath near the 1.3750 level and/or the 200 day EMA that I would be worried about the longer-term trend.

What I will be doing is waiting to see whether or not we can get some type of stability or bounce that I can start buying into. If we recapture the 50 day EMA, then it will be very bullish to say the least. Yes, the US dollar is stronger at the moment, but let us keep in mind that this has only been a day and ½ so far, compared to several months of a very strong move higher.

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