The British pound has fallen initially during the trading session on Friday but then turned around to bounce near the 50 day EMA. The 50 day EMA has offered a significant amount of support multiple days in a row, so it is not a huge surprise to see that continue to be the same reaction. Now that the jobs number has come out, adding 943,000 jobs during the previous month, the market has decided to simply grind away to the side yet again.
GBP/USD Video 09.08.21
The 50 day EMA has offered quite a bit of resistance previously, so the fact that it had support should not be a big surprise. Ultimately, the market is likely to see the 1.40 level above the word of course offer a significant amount of resistance as we have seen multiple times in the past. In other words, we are essentially being squeezed between two major levels. In other words, this is simply a scenario where we wait for some type of break out to get involved.
If we were to break down below the 50 day EMA and the lows of the week, the market would more than likely go looking towards the 1.37 handle. The 1.37 handle of course features previous support as well as the 200 day EMA. To the upside, if we were to break above the 1.40 handle, then it is possible that we could go looking towards 1.42 handle, which is where we have seen a massive amount of resistance previously. All things being equal, this is a market that I think continues to see a lot of noisy behavior.
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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