GBP/USD Weekly Price Forecast – British Pound Recovers Towards 50 Week EMA

The British pound has rallied during the course of the week to reach towards the 50 week EMA, where we are currently hanging about. The market looks very likely to see a bit of resistance above, so the question now is whether or not the major selloff during the previous week is going to stick, or is the British pound going to recover? I think we will probably have some clarity over the next couple of weeks, which could lead to a longer-term position.

GBP/USD Video 11.10.21

If we were to break above the top of the weekly candlestick from last week, that could lead towards a bigger move, perhaps reaching towards the 1.39 level. If we break above the 1.39 level, then I think the market is likely to go looking towards the 1.42 handle. On the other hand, if we were to turn around a break down below the 1.35 level again, that more than likely opens up quite a bit of selling pressure to the downside.

Currently, the market is going back and forth between the 50 and 200 week EMA indicators, so that of course could keep this market very choppy and volatile, so with that in mind I think that it is going to be difficult to hold a bigger position, at least until we get some type of confirmation of which direction, we are getting ready to go next. Be patient, the market should open up a trade for you, but you need to let it decide where it wants to go next.

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