GBP/USD Weekly Price Forecast – British Pound Gives Up Early Gains for The Week

The British pound has initially rally during the course of the week but failed at the 1.39 level to turn things back around yet again. The British pound has been all over the place as of late, and it looks to me as if the market is going to continue to see a lot of uncertainty and volatility. The 1.37 level underneath is where the 200 day EMA is on the daily timeframe, so that will attract a certain amount of attention, but what I am focusing on from a longer-term standpoint is there was recent lows that we had formed near the 1.36 handle.

GBP/USD Video 20.09.21

If we were to break down below the 1.36 level, then it is likely that we could see an even bigger flush lower, just as if we can turn around a break above the 1.40 handle, which would open up a move towards the 1.42 handle. At that point, it would be a major selloff of risk appetite, as traders go rushing towards the greenback for safety. Watch the bond markets, because if they continue to attract inflows, that could be reason enough for the British pound to fall. At this point, I think it is much more about the greenback than the British pound.

I would anticipate that this is a market getting ready to build up momentum, but we have not quite had the reason to go in one direction or another. That being said, the market is likely to make a move sooner or later, and right now it looks like we are “tilting” to the downside more than anything else.

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This article was originally posted on FX Empire

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