GBP/USD Price Forecast – British Pound Continues Consolidating
The British pound has gone back and forth during the course of the trading session on Friday as we continue to see this market hang about the 1.38 handle. The market of course has been a little overextended, and as we go into the weekend, it is not a huge surprise that the market had nowhere to be. I think at this point in time we are likely to see a lot of noisy behavior as we work off all of that froth from the shot higher.
GBP/USD Video 25.10.21
The 1.37 level underneath will continue to be important, especially as the market has been reactive to that level multiple times and of course the 50 day EMA as well as the 200 day EMA both sit there. With this being the case, the market is likely to see a lot of interest in this area, so I think a pullback to that region makes quite a bit of sense.
Your capital is at risk
There should also be plenty of buyers in that region, thereby allowing value hunters to get involved. If they do, then I am more than willing to start buying as well. I think the markets have gotten far too ahead of themselves, so if we do see some type of opportunity at lower levels, it is certainly worth exploring. The markets are likely to continue being noisy, but I would not read too much into the Friday candlestick as it would have been a lot of position squaring exercise going into the market is closing.
For a look at all of today’s economic events, check out our economic calendar.