GBP/USD Weekly Price Forecast – British Pound Sitting on 200 Week EMA

The British pound has rallied during a bulk of the week, but continues to shy away from the 1.35 handle. This is an area that has a certain amount of psychology attached to it, and of course in the past has been both support and resistance so there should be a lot of “market memory” in that area. Ultimately, I think that this is an area that could define whether or not we continue to recover or if we fall apart. That being said, the market is likely to continue seeing a lot of volatility, and this will probably be based more upon the US dollar than anything else. If we can break down below that 200 week EMA, then I think it is likely that we could go looking towards the 1.30 level, although that may take a while to happen. In general, I think this is a market that is going to be noisy to say the least.

GBP/USD Video 22.11.21

If we break down below the 200 week EMA, I will start to add to my position, but it does not take too much imagination to squint your eyes and noticed that we are at the bottom of a descending channel. Furthermore, we had been in an uptrend for so long that it is difficult to imagine a scenario where we simply fall apart. In general, I think we will continue to bang around just below the 1.35 handle, but if we can take out the 1.36 handle, then I would be a buyer. Until then, I think this is probably a very noisy kind of day trading environment just waiting to happen.

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