GBP/USD Price Forecast – British Pound Trying to Break Higher

The British pound has rallied a bit during the trading session on Tuesday as the market is trying to break above the 1.38 handle. Above there we have the 50 day EMA sloping lower, which also is an indicator that a lot of people pay close attention to for resistance. Ultimately, it is worth noting that we did give back some of the gains initially but look at this chart you can also see that there is a little bit of a “double bottom” that has recently formed. The market could go back lower to test it again, but the 200 day EMA sitting right at the 1.37 level could be difficult to crack as well.

GBP/USD Video 01.09.21

In other words, the market will continue to be very noisy and choppy to say the least. On the other hand, if we were to break above the 50 day EMA, then the market could go looking towards the 1.40 level above, which had been massive resistance previously. I think at this point though, the market will be waiting for the jobs report on Friday more than anything else, because at least that will give us an idea as to where the US dollar is going to go.

In fact, it is almost as if the British pound has no influence on what we are getting ready to do longer term. Ultimately, I think that we are going to continue to chop back and forth in order to try to pick up some type of momentum. The next couple of days could be choppy and difficult to say the least.

For a look at all of today’s economic events, check out our economic calendar.