GBP/USD Price Forecast – British Pound Goes Back and Forth Yet Again
The British pound has gone back and forth during the course of the trading session, suggesting that the market is going to see a lot of choppy behavior. The 50 day EMA sits just above, which in and of itself could offer a little bit of resistance, showing hesitation. This is a market that is starting to try to figure out whether or not we are trying to go higher, or lower. Quite frankly, this is a market that seems to be a bit confused, which makes quite a bit of sense, but you should also take a look at the technicals to give you a little bit of a heads up as well.
GBP/USD Video 20.09.21
To the upside, the 1.39 level will offer resistance, perhaps opening up the possibility of a move towards the 1.40 handle. To the downside, the 1.37 level underneath will offer significant support, as the 200 day EMA sits there, and if we break down below there then it is likely that we could go looking towards the double bottom at the 1.36 handle.
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The market breaking down below there would signify a bit of a collapse, perhaps opening up the possibility of a major “risk off” type of situation. On the other hand, if we were to break to the upside, clearing the 1.40 handle would open up the possibility of a move to the 1.42 level, at the very least. After all, the market would have kicked off a major “W pattern” if that does happen. All things been equal, this will have a lot to do with risk appetite more than anything else.
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