The British pound has rallied a bit during the course of the trading session on Monday to bounce from the 1.38 level. That is an area that has been fairly important for some time now, and therefore it makes sense that we bounced just a bit after falling straight down towards it. The question now is whether or not we can find some type of upward momentum? At this point, it is worth noting that although we are still technically in an uptrend, we had seen a lot of damage over the last couple of days.
GBP/USD Video 22.06.21
The 200 day EMA is currently reaching towards the 1.3650 level, an area that I think will offer a bit of support, but it will be interesting to see whether or not it reaches towards the 1.3750 level. That is an area that previously had been important, so it is worth paying attention to. I think we probably get a short-term bounce, but a lot of noise above the keep things somewhat quiet in the short term.
This is the type of market that could be very noisy over the next several sessions, so I anticipate more neutral trading than anything else. I do think that we are probably going to make an impulsive move in one direction, or the other hand be able to follow it. In general, this is a market that I think is probably best being cautious with, if for no other reason than the fact that the British pound does not seem as if it knows what it wants to do over the next several weeks.
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This article was originally posted on FX Empire