GBP/USD Price Forecast – British Pound Trying to Find Footing

The British pound has gone back and forth during the course of the trading session on Friday to show signs of support near the 1.37 handle. Ultimately, this is a market that is likely to continue to go sideways in the short term, mainly because we are trying to form a bit of a hammer that was preceded by a shooting star. If we can turn around a break above the top of the shooting star, and of course the 50 day EMA, then the market is likely to go looking towards the 1.14 handle.

GBP/USD Video 12.04.21

If the market breaks down below the lows of the Friday session, then we will go looking towards more support that extends all the way down to the 1.35 handle. It is worth noting that the British pound is suddenly very soft, but the question now is whether or not we are going to form a little bit of a “double bottom” in this general vicinity? After all, the British pound has been one of the better performers until recently against the greenback.

Looking at this chart, I do think that we are starting question whether or not this currency can continue to go higher, but we have not broken through the major support level that I see in the form of the 1.35 handle, due to the fact that we would not only break down through a major level, but we would also overtake the 200 day EMA to the downside. Because of this, the market is likely to be one that you should watch more than trade in the short term, because eventually will get one of these clear signals to get involved for a bigger move.

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