GBP/USD Price Forecast – British Pound Looking for Buyers

The British pound has pulled back just a bit during the course of the trading session on Wednesday but then found the 1.3750 level to be supportive, and most certainly the 1.37 level will be as the 200 day EMA is sitting just above there also. All things been equal, this is a market that I think eventually finds a reason to go higher, and as a result it is likely that we have a big fight ahead of us.

GBP/USD Video 09.09.21

Underneath, we had formed a bit of a “double bottom”, and I think a lot of traders are trying to look at that as a significant bottom in the market. Traders will also look at the 50 day EMA above as a potential buying opportunity, and the candlestick that is forming for the Wednesday session does of course suggests that the buyers are starting to finally return. If that is going to be the case, then we could see a move against the greenback in general. After all, most of what we have seen recently has been more about the Dollar and less about the Pound, so with that you need to pay close attention to the US Dollar Index. Ultimately, we need to make a move above that 50 day EMA to show momentum picking up again, and perhaps an attempt to get to the 1.40 level after that.

Alternately, if we break down below the 1.37 level, then we go looking towards 1.36 handle where the double bottom had formed previously. If we give that level up to the downside, that is going to be an extraordinarily negative sign, opening up a bit of a trapdoor to lower pricing.

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