GBP/USD Price Forecast – British Pound Trying to Save Itself

The British pound fell initially during the course of the trading session on Thursday but turned around to show signs of stability. Ultimately, the market is sitting on top of major support, and as a result I think what we are looking at is a market that is trying to hang onto massive support that extends down to the 1.37 handle. That is an area where we have seen action in the past, and of course have seen the 200 day EMA coming into the picture.

GBP/USD Video 02.07.21

If we were to break down below the 200 day EMA, then I think that opens up a move down to the 1.35 handle. At this point though, it certainly looks as if we are going to struggle to break down, and now it looks as if the market is trying to bounce, if for no other reason than short covering ahead of the jobs number coming out on Friday. Keep in mind that one set jobs number comes out, traders in America will immediately begin thinking about the Independence Day holiday, meaning that the market is likely to go flat shortly after the announcement. Because of this, this could be a couple of relatively quiet sessions for anything related to the US dollar.

The British pound of course is sitting on top of that massive support, and it is worth noting that the 1.42 handle above is massive resistance on a longer-term standpoint. Because of this, the market is likely to continue to see a lot of erratic and choppy behavior in this overall range that we find ourselves trading in over the last couple of weeks.

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