GBP/USD Price Forecast – Pound Continues to Bounce Around 50 Day EMA
The British pound has gone back and forth during the course of the trading session on Thursday as we continue to see a lot of choppy volatility. At this point time, the market continues to look at the 1.3750 level as a magnet for price, and of course the 50 day EMA is a technical indicator that a lot of people will pay close attention to. It is flat, so that suggests the market is still trying to figure out what to do.
GBP/USD Video 16.04.21
The 1.3750 level was previous resistance, and it should now be support. At this point in time, it looks as if the market is trying to recover the overall uptrend, and I do think that eventually it could happen. That being said, it does not look like we have a lot of momentum going forward. On the other hand, if we were to break down below the little double bottom that we formed over the last month or so, then the market could go down to the 1.35 handle. The 1.35 level is a large, round, psychologically significant figure, and will attract a lot of attention as well. Furthermore, it also has the 200 day EMA reaching towards it, which should be supportive in and of itself. Breaking through all of that would change the trend but until we do that, it looks as if we are simply trying to find our footing.
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If we do find our footing, then the 1.40 level would be the potential target, as it had been previous resistance, and it of course is a large, round, psychologically significant figure that will attract a lot of attention.
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