GBP/USD Price Forecast – British Pound Reverses After CPI Figures

The British pound initially fell during the course of the trading session on Wednesday but then turned around to show signs of strength again after the CPI numbers in America came out as anticipated. That being said, we still have the 50 day EMA above, and we also have to worry about the PPI figures coming out on Thursday. Keep in mind that the market will continue to pay close attention to the 50 day EMA just above, and therefore it is likely that we would see a bit of technical resistance in that vicinity. That does not mean that we cannot break above there, just that the market will recognize it as an area worth paying attention to.

GBP/USD Video 12.08.21

If we were to break down below the bottom of the candlestick for the trading session on Wednesday, then the market is likely to go much lower, reaching towards the 200 day EMA which is sitting just above the 1.37 level which is also a massive support level on longer-term charts that people will be paying close attention to. If we break down below there, then the market is likely to go looking towards the 1.35 level, which is a large, round, psychologically significant figure.

If we do get enough bullish momentum, we could turn around and go looking towards 1.40 handle, which is a major barrier that we have seen cause problems multitudes of times, and therefore I think it is going to be very difficult to get above there. If we do, then the market could go looking towards 1.42 level, an area that has been an absolute brick wall multiple times.

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