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GBP/USD Price Forecast – British Pound Pulls Back to Kickoff Week

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·2 min read
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  • GBPUSD=X
  • USD=X
  • GBP=X

The British pound rallied a bit during the course of the trading session on Monday, but then gave back the gains to show signs of hesitation. We have broken resistance on Friday, and it now looks as if we are trying to verify that breakout, and perhaps keep the 50 day EMA and the 200 day EMA both offer support. If we can break above the highs of the last couple of days, then we are more likely to go looking towards the 1.38 handle next, maybe even the 1.39 handle.

GBP/USD Video 19.10.21

On the other hand, if we were to wipe out below the bottom of the candlestick from Monday, then it could go lower to reach down towards 1.36 handle. Breaking down below there would confirm a resumption of the previous move lower, but at this point in time it would take a lot of work to make that happen. I do believe that we are going to see a resumption of choppy volatility, so you will need to be very cautious with your position size until we get a little bit more trending volatility.

We are starting to force that issue now, so I do suspect that in the next few days it will be easy to get long or short, but right now it seems very likely that we are going to see more work to be done before we can get very big with our trading position, but clearly it looks as if we are ready to make a rather significant move to the upside if I had to make a guess with the current action.

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

This article was originally posted on FX Empire

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