GBP/USD Weekly Price Forecast – British Pound Gives Up Early Gains for The Week

The British pound has tried to get to the 1.40 level during the course of the week but then rolled over to show signs of weakness again. By doing so, it looks like the market is probably going to try to reach down towards that support level underneath near the 1.37 level again. The 1.40 level being broken to the upside would obviously be a very bullish sign, but I do not see that happening based upon the recent action that we have seen, so therefore I think we continue to ask questions of the British pound, or perhaps more importantly, the US dollar.

GBP/USD Video 09.08.21

If the US dollar continues to strengthen, we will probably test that 50 week EMA yet again, and if we take out that hammer from a couple of weeks back, that would be an extraordinarily negative sign, sending this market much lower. On the other hand, if we were to turn around and take out the 1.40 handle, then we could go looking towards 1.42 level which is even more resistive. That being said, I anticipate that this market will continue to see a lot of choppy volatility, perhaps making this market difficult to trade for the longer term, but we have a couple of obvious levels that we need to pay close attention to.

In general, this is a market that I believe continues to stay in this overall range in the short term, so the next couple of weeks might be choppy, especially as the month of August is typically a bit quiet as a lot of the bigger players are away on holiday.

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