GBP/USD Price Forecast – British Pound Struggling With 200 Day EMA

The British pound has gone back and forth during the course of the Tuesday session, as we are struggling with the idea of advancing above the 200 day EMA. Because of this, I anticipate a lot of choppiness, especially as the 1.3750 level has been important in the past as well. As things stand at the time of writing, it certainly looks as if we are going to struggle to get some type of clarity in the meantime, and therefore I think that if we break down below the bottom of the candlestick that could be a sign that we are going to test that “double bottom” underneath and start getting aggressive to the downside.

GBP/USD Video 25.08.21

With Jackson Hole going on this week, a lot of people will be paying close attention to any tapering talk coming out the Federal Reserve and other central banks. At this point, there is an argument to be made in both directions so I think we will continue to see noisy and sideways action overall. On the other hand, if we were to break above the highs of the session and it is likely that we go looking towards the 50 day EMA, which is currently sitting at 1.3850 and sloping lower.

I believe more than anything else, this is all about the US dollar, and not so much about the British pound. In fact, you can make that argument across several major currency pairs right now as they all pretty much look the same. With that being the case, I suspect keeping an eye on the US Dollar Will help a lot as well, and perhaps even the 10 year note

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