GBP/USD Price Forecast – British Pound Continues Consolidation

The British pound has rallied ever so slightly during the trading session on Monday but quite frankly the range leaves a lot to be desired. As we wait for the jobs figure on Friday, this could be a very tight week. The 200 day EMA continues to attract a certain amount of attention obviously, but at the end of the day the market seems as if it simply has no idea where it wants to go. As we are at the very end of August, this is a very quiet time of year typically, traders are more worried about holiday than putting money to work.

GBP/USD Video 31.08.21

At this point in time, the 1.37 level of course is a large, round, psychologically significant figure, but over the last several weeks we have sliced through couple of times, so the question now is whether or not we are trying to form a bounce from the “double bottom” underneath, or if we are simply going to roll right back over? If we do break down below the 1.37 level, then it is likely that the 1.36 level underneath would be targeted, as it was that double bottom. If we break down below there, then the market is likely to go looking towards 1.35 handle which of course is a large, round, psychologically significant figure. Breaking down below that level would ultimately be a horrific signal for this market. On the other, if we were to turn around a break above the 50 day EMA, that could open up a move towards 1.39 above.

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