GBP/USD Price Forecast – British Pound Continues to Grind Higher

The British pound has rallied a bit during the course of the trading session on Monday, but as you can see, we have struggled a little bit as well. All things been equal, it looks as if we are trying to grind towards the 1.3850 handle, where we would also meet up with the 50 day EMA. At this point, the market is likely to see a lot of noisy behavior, and that noisy behavior could continue to cause a little bit of uncertainty, thereby pushing money into the US dollar. That being said, the 1.37 level underneath should be rather supportive due to the fact that it has been important in the past, and of course the 200 day EMA jumping into this area also offers very supportive behavior.

GBP/USD Video 27.07.21

To the upside, if we can break above the 50 day EMA, then it is likely we could go much higher, perhaps reaching towards the 1.40 handle. The 1.40 handle of course is a large, round, psychologically significant figure and an area that I think a lot of people would pay close attention to. With that being the case, I do think that it is only a matter of time before we need to get some type of certainty, which is something we desperately need at this point. The most recent selloff has been rather brutal, so keep that in mind but it certainly looks as if we are trying to recover heading into the New York session. If that is going to be the case, it looks like the Americans are going to go “risk on” yet again.

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