GBP/USD Price Forecast – British Pound Testing Support

The British pound has gapped lower to kick off the trading session on Monday, only to turn around and show signs of strength again. By doing so, the market is trying to solidify the idea of the 1.3750 level being both support and resistance from the longer-term standpoint. The 50 day EMA sits right in that same area as well, so it do think this could be an excellent entry point if the uptrend continues. If it does, we could be looking at a retest of the 1.42 level above, which of course has seen massive resistance. When you look at the weekly chart, that is an area that has been massive resistance in the past. That being said, the market is likely to continue to see 1.4 to offer problems.

GBP/USD Video 9.03.21

To the downside, if we were to break down below the 50 day EMA it is likely that the market goes looking towards 1.35 handle eventually. The 1.35 handle of course is a large, round, psychologically significant figure, and would attract a lot of attention as well. With that being said, I do believe that we continue to see more buyers than sellers, so I do not have any interest in shorting this market, at least not until we significantly slice through the 1.35 level to the downside. All things being equal, I think the one thing you can probably count on is a lot of volatility but that should be nothing new if you are experienced at all when it comes to trading the British pound, especially over the last year or so.

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