empty
 
 
21.09.2021 08:19 AM
Breaking forecast for GBP/USD, 21.09.2021

Judging by the movements in the foreign exchange market, worries over the EU energy crisis have subsided. At least the mass media no longer reveal new shocking details. Power prices seem to have stabilized. Although they still remain extremely high. EU governments declared the allocation of additional funds to support businesses and consumers. Despite the fact that the pound sterling shows growth, it is extremely limited. Its movements are quite similar to ones that happened on September 16 - 17. Back then, the pound sterling undertook modest and sluggish attempts to grow, followed by a drastic decline. Indeed, there is no extremely negative news, but there is also no positive news. For this reason, many traders are convinced of the inevitability of the prolonged crisis and disastrous consequences for the economy. The British currency is unable to rise amid these fears. Today, the pound sterling is highly likely to stay flat. Yet, there might be insignificant growth. Besides, over the previous few trading days, the single currency has plunged considerably. This scenario is likely to come true only if there are no new negative reports on the European energy market.

The dollar/pound pair fell by 160 pips during the inertial movement in just two trading days. So, there was an increase in the volume of long positions on the US dollar in terms of a correction as of August 23-September 3.

The technical indicator RSI entered the oversold zone after a sharp price change. It is below the 30 line. Shortly after, there was a slowdown in the downward movement. The 1.3640 level acts as a pivot point. From this level, the pair rebounded.

On the daily chart, the US dollar rose by about 87% thanks to the correction.

Outlook:

Now, the pound sterling is oversold. So, it may rebound. A rise in the volume of short positions is expected if the quote consolidates below 1.1700 on the H4 chart.

As for complex indicator analysis, technical indicators are signaling to buy the pair in the short term amid a rebound and sell it on the intraday chart due to a downward cycle.

This image is no longer relevant

Dean Leo,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback