GBP/USD Price Forecast – British Pound Defendants Major Support Level

The British pound has initially fallen during the trading session on Friday but has seen a little bit of support underneath near the 1.3750 handle, which of course is just above the 1.37 level, an area that had been major support. The 200 day EMA is sitting just below that level, and flattening out, so it is very possible that longer-term traders will be looking at this as a potential buying opportunity. Because of this, it is very likely that we could get a short-term bounce.

GBP/USD Video

That being said, if the market were to break above the 50 day EMA, then obviously that would be a very bullish sign, but currently that 50 day EMA is sitting at the 1.3950 handle right now, so we have quite a bit of room to move back and forth. Ultimately, this is a market that is trying to figure out whether or not we are going to hold support, or if we are going to drop. Looking at the Forex markets in general, the US dollar is looking very strong, and Friday seems to be perhaps a little bit of short covering, just as we had seen last week. Nonetheless, the market is likely to continue to be very noisy, as we are starting to worry about the yields in the 10 year note, and the possibility that growth is going to be slow.

Ultimately, this is a market that should continue to be very noisy in general, and of course will move back and forth along with the idea of the UK reopening. It looks as if it is basing, but I see a ton of noise above that will continue to cause issues.