GBP/USD Price Forecast – British Pound Bounces From 50 Day EMA
The British pound has gone back and forth during the course of the trading session on Tuesday as we await the results of the Federal Reserve meeting. Having said that, the Core Retail Sales figures came in at -0.7%, as opposed to the expected 0.4% for the previous month. This is a huge miss on the part of retail, and that could have people either a bit concerned, or could possibly have people looking at the Fed has been unable to do anything. Obviously, inflation is an issue that people are worried about but if retail sales suddenly fall off of a cliff, inflation is going to be tamed.
GBP/USD Video 16.06.21
Nonetheless, it looks as if the 1.40 level underneath should offer support, as it was previous resistance, and I do think that a lot of people pay close attention to it. I think at this point in time the 1.42 level is a target and has most certainly been a major barrier. If we can get above that level, then it is likely that we could rise all the way to the 1.45 handle but obviously that would take quite a bit of momentum. I think at this point people are simply waiting to see what the Federal Reserve says after its meeting before putting a lot of money into the market, especially when it comes to anything related to the US dollar.
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The question now is whether or not this is going to end up being a “rounded top”, or is it simply going to be yet another pullback in the march higher? Over the next couple of days, we should have a little bit more clarity, but right now it still remains a little bit of a “buy on the dip” scenario.
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