GBP/USD Price Forecast – British Pound Rallies to Recover Yesterday’s Losses
The British pound has rallied a bit during the course of the trading session on Wednesday to recover quite a bit of the losses on Tuesday, so it will be interesting to see whether or not we can continue to go to the upside. If we were to break above the 50 day EMA, that would be a very bullish sign for the British pound, and perhaps send this market much higher, looking to reach towards the 1.40 handle.
GBP/USD Video 15.07.21
On the other hand, we continue to see quite a bit of noise, it is likely that we will drop to test the 1.37 handle again, an area that I believe will continue to be massive support. That massive support level will be difficult to break down below, because not only do we have an area where we have seen a lot of support in the past, we also now have the 200 day EMA in that same region that will attract a certain amount of buying pressure as well.
That being said, if we were to break down below the 1.37 handle, then it is likely that we could go looking towards the 1.35 handle. The 1.35 level being broken to the downside could open up a huge move to the downside, perhaps straight down to the 1.30 level. All things been equal, this is possibly the move that is about to happen, but we will have to see what happens with the US dollar more than anything else. At this point, I think this pair is trading more on the greenback than Sterling.
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