GBP/USD Price Forecast – British Pound Continues to Show Support Just Below

The British pound has recovered after initially selling off during the trading session on Thursday, as the market continues to look at the 1.37 level as a major support level. Ultimately, this is a market that I think continues to see a lot of noisy behavior just underneath, not only do to that big figure but also the fact that it had previously been resistance, and of course also has the 50 day EMA and the 200 day EMA coming into the picture. With that being the case, the market is likely to continue seeing a lot of back and forth here, but I do think we are trying to build up the case to go higher.

GBP/USD Video 29.10.21

With all of that being the case, I think we have a little bit of work to do here but it is obvious that the market does not want to give up the idea of going higher, and as a result I think that eventually we get the breakout to the upside. If we can clear the 1.3850 level, then we are likely to go towards the 1.39 level, and then eventually the 1.40 level. The market continues to see a lot of noisy trading around the world, not just in this pair. Ultimately, this is a market that I think you continue to see a lot of momentum building up, and eventually we should get that explosive move. However, if we were to break down below the 1.37 handle, then it is possible that we could break down rather significantly. At this point, I continue to buy the dip until told to do differently by the market itself.

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