GBP / USD Forecast: Confusion
The pound swung back and forth during Thursday’s trading session as the UK’s Monetary Policy Committee moved back and forth, the announcement suggesting the cut will be much faster than it is. initially thought so. This obviously pushed the British pound higher, but at the end of the day we saw this market go back and forth, showing signs of uncertainty. However, the market is at the top of a crucial indicator in the form of the 50-day EMA indicator. Ultimately we also have the previous downtrend line which should offer support alongside the 1.3750 level. After that we even have a double bottom which has been crucial before.
It’s only when we collapse below that double bottom that I will become concerned because there’s so much support underneath that it would have to be resolved to break down. If that happens it would be a very negative sign for the Pound and could open a move down towards the 1.35 handle. The 1.35 handle also features the 200 day EMA which I will consider the end of the overall trend if we get below it.
On the upside, the 1.40 level continues to be an important resistance as we have seen the market try to cross it several times and fail. That being said, the market breakout above that level could open the possibility of a move towards the 1.42 handle, but with the jobs count coming out on Friday, it is very likely that we will continue to see a lot of volatility over the next 24 hours. . At this point, I’m not a big fan of putting money to work until this ad and reaction is removed, but it’s obvious to me that we’ll see a lot of commotion in the near term and that so we’ll think it’s only a matter of time before we have to make a bigger decision, and all things being equal it is very likely that we will continue on the upward trajectory but that doesn’t mean it will be easy. . All else being equal, it is likely that we will end up continuing, but we are still on the short term side.