GBP/USD Price Forecast – British Pound Reaches Towards Massive Support

The British pound has gone back and forth during the trading session on Friday, as we continue to look at the 1.37 level underneath as massive support. It should also be noted that the 200 day EMA is reaching underneath it, and it certainly looks as if we are going to continue to see that offer support as well. If we break down below the 200 day EMA, then it is likely that we could go down to the 1.35 handle.

GBP/USD Video 05.07.21

To the upside, the market sees a lot of resistance all the way towards the 50 day EMA which is currently dropping from here. When you look at the chart, you can see that we have formed a bit of a “H pattern”, which is a very negative sign to say the least. Because of this, it is very likely that any move to the upside will be sold into, as there is a lot of noise in that pattern, and quite frankly it looks to me as if the market is going to continue to be volatile to say the least. With this, it is probably only a matter of time before we break down below there is support, but the occasional bounce might be a nice selling opportunity.

If we did somehow take out the 50 day EMA, then we could go looking towards the 1.42 handle, an area that is massive resistance on longer-term charts. One thing is for sure, we have a lot on our plate here, and it certainly looks as if things are about to get truly interesting to the downside.

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