GBP/USD Price Forecast – British Pound Trying to Recover

The British pound has rallied a bit during the trading session on Wednesday to show signs of life again, as we have sold off quite drastically as of late. Nonetheless, the 1.37 level above is where most traders will be paying close attention to, due to the fact that it is an area that has “flipped the market” in both directions recently. We also have the 50 day EMA sitting on top of the 200 day EMA in that same region, so a certain amount of resistance might be felt in that general vicinity as well.

GBP/USD Video 04.11.21

When you look at this chart, you can see that we had recently bounced rather significantly, and it is worth noting that just yesterday I suggested that if the British pound does not save itself here, it may very well not do it at all. The next major argument of course is going to be whether or not we can get above the 1.37 handle, and if we do then I think we have a good shot towards the 1.3850 level.

The market of course will be paying close attention to the interest rate situation in the United States, as that could greatly influence what happens with the greenback. Obviously, that is half of the pair here, and the US dollar is quite often the main driver of where Forex goes in general anyway. With this being the case, I think we continue to see more of a choppy and dirty market to deal with, but if we were to finally break above the 1.3850 level, then I think we get more of a buy-and-hold scenario.

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