GBP/USD Price Forecast – British Pound Stumbles to Open Week
The British pound has pulled back a bit during the course of the session on Monday in what would have been relatively quiet trading as the Americans and Canadians were both celebrating Labor Day. Ultimately, the 50 day EMA underneath should offer a little bit of support, but if we can break below that level, then it is likely that we could go looking towards 1.37 level underneath. The 200 day EMA is sitting right there as well, so I would think that there is a certain amount of support in that area. A pullback at this point could more than likely find a certain amount of support in that area, and if we were to break through that area, then the market goes looking towards 1.36 handle.
GBP/USD Video 07.09.21
On the other hand, if we can turn around a break above the Friday candlestick then it is likely that the British pound goes looking towards the 1.40 handle. The 1.40 handle has been crucial more than once and breaking above there would then kick off a large “W pattern” that could send this market much higher. All of that being said, the reality is the US Dollar is the main driver of this and all pairs right now, so I think you will have to pay attention to the US Dollar Index to get a grasp on where we are going next. Because of this, I also believe that we will have much more in the way of clarity when the US and Canada come back online once the holiday is in the rear view mirror.
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