GBP/USD Price Forecast – British Pound Turns Around for Gains

The British pound has rallied a bit during the course of the trading session on Wednesday to test the top of the shooting star from the Tuesday session. Ultimately, the 50 day EMA sits just above and is starting to come into the picture, with a somewhat downward slope to it. Because of this, I think that we will probably continue to see a lot of trouble, because at this point in time it is likely that the market will continue to be very choppy between now and the jobs number, which comes out on Friday.

GBP/USD Video 02.09.21

Underneath, we have the 200 day EMA sitting just above the 1.37 level, an area that has been short-term support. If we were to break down below there, then the market probably goes looking towards the 1.36 area, where we had formed a little bit of a “double bottom.” Currently, we are stuck between the 50 day EMA and the 200 day EMA, so it does suggest that the market is likely to be very noisy.

All things been equal, this is a pair that I think is going to be moving on the Federal Reserve more than anything else, but as we drift into several announcements later in the week. All things being equal, this is a market that I think would continue to see a lot of noisy behavior, so you need to be aware the fact that the next couple of days would be chop more than anything else. Ultimately, this is a market that I think needs to see some type of impulsive candlestick to get going. We do not have it yet, so I have very little in the way of conviction over the next day or two.

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