GBP/USD Price Forecast – British Pound Slams Into 200 Day EMA
The British pound has rallied significantly during the course of the trading session on Thursday to reach towards the 200 day EMA. At this point, the 1.37 level being broken to the upside is somewhat positive, and you can make an argument for a potential triple bottom at this point. That being said though, the highs keep getting lower, so you can also still make an argument for a descending triangle. The 200 day EMA in and of itself tends to be resistant to the uptrend, but if we get above there then the next argument is going to be at the 50 day EMA. The 50 day EMA continues to offer a bit of interest as well, as it is sloping lower.
GBP/USD Video 24.09.21
At this point, a lot of this will come down to the risk appetite of traders, as the US dollar is a major safety currency. That being said, I believe that this is a market that is trying to figure out whether or not it can break down. If we get below the 1.36 handle, then this pair will more than likely go much lower, perhaps reaching towards 1.35 handle before making an even bigger move to the downside.
Your capital is at risk
To the upside, I would need to see this market break above the 1.39 level to get bullish of this pair, and right now that looks like it is going to be very difficult to make that happen. With this, I think we continue to look for signs of exhaustion that appear on shorter-term charts in order to fade rallies.
For a look at all of today’s economic events, check out our economic calendar.