GBP/USD Price Forecast – British Pound Pulls Back

The British pound has fallen a bit during the trading session on Wednesday as we continue to chop back and forth against the greenback. As the market awaits the decision for the Federal Reserve, it suggests that we are going to see a lot of time killing in the short term, and therefore I think we have to pay attention to the 50 day EMA, which of course would be a widely followed technical indicator. If we were to break down below there, then it is likely that the 1.3750 level will be tested, right along with that little double bottom that form just below it.

GBP/USD Video 29.04.21

If we were to break down below there, then the market is likely to go looking towards the 200 day EMA which sits at the 1.35 handle. At this point, the market is likely to see a lot of buyers jumping into this market based upon value, as we have been very bullish for quite some time, but the last couple of months have been less than impressive. At this point time, the market continues to wait for some type of clarity, something that we do not have at the moment. All things been equal, I believe that this market is ready to do nothing in the short term, as the 1.40 level is such obvious resistance.

If we were to break above there, then the market could go looking towards the 1.42 handle, an area that has been massive resistance. If we were to break above there, then the market is likely to go looking towards 1.45 handle. At this point though, I anticipate that the market is simply going to be choppy.

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