GBP/USD Price Forecast – British Pound Hovers at 200 Day EMA

The British pound has rallied a bit during the course of the early Friday session, with an eye on the 200 day EMA. At this point in time, the market looks as if it is going to continue to hang about the 1.37 handle, which is an area that has been important more than once. The question now is whether or not the potential tapering coming out of the United States will drive money back into the US dollar, or will the Federal Reserve give Wall Street what it wants, which is to destroy the US dollar?

GBP/USD Video 30.08.21

At this juncture, there have been several people on the Federal Reserve voting roster that have suggested that the tapering needs to happen much sooner, and that of course has been bullish for the US dollar in general. At this point though, now the market is simply waiting to see whether or not the “rubber hits the road”, or if it is just more lip service. At this point in time, we are at a significant crossroads, and the next several months could get a little bit of directionality going forward, giving us the possibility of some type of trend.

At this point, most traders are waiting to see whether or not the Federal Reserve is going to taper the $120 billion per month bond purchase program, or if they are simply going to play along the same game, they have been involved in over the last 13 years. At this point in time, if we break down below the 1.36 level underneath, the market then goes looking towards 1.35 handle. On the other hand, if we were to turn on a break above the highs of the last couple of days, the 50 day EMA gets targeted.

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