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
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
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

Recommended Stories

Hot Forecast for EUR/USD on December 10, 2024

The currency market continues to consolidate around levels reached on Friday, primarily due to the complete absence of any macroeconomic data. With today's economic calendar remaining empty and the European

Dean Leo 05:52 2024-12-10 UTC+2

Hot Forecast for EUR/USD on December 9, 2024

The unemployment rate in the United States increased from 4.1% to 4.2%, which was not entirely unexpected. However, the dollar strengthened. The key driver was the creation of 227,000

Dean Leo 06:27 2024-12-09 UTC+2

Hot Forecast for EUR/USD on December 6, 2024

Eurozone retail sales growth slowed significantly from 3.0% to 1.9%, much worse than even the most pessimistic forecasts. Yet, the euro still managed to gain ground. It is impossible

Dean Leo 06:31 2024-12-06 UTC+2

Hot Forecast for EUR/USD on 05.12.2024

The rate of decline in producer prices in the Eurozone slowed from -3.4% to -3.2%, contrary to expectations of an acceleration to -3.5%. This indicates that, while likely to decrease

Dean Leo 06:37 2024-12-05 UTC+2

Hot Forecast for EUR/USD on December 4, 2024

The number of job openings in the United States was expected to decrease by 63,000 but increased by 372,000. However, it's difficult to draw any conclusions from this data because

Dean Leo 06:30 2024-12-04 UTC+2

Hot Forecast for EUR/USD on December 3, 2024

Instead of rising from 6.3% to 6.4%, the Eurozone unemployment rate remained unchanged. However, this did not impact the market, and prices stayed flat. This is partly due to news

Dean Leo 06:30 2024-12-03 UTC+2

Hot Forecast for EUR/USD on 02.12.2024

Despite the acceleration of annual inflation in the Eurozone from 2.0% to 2.3%, the euro failed to rise and even weakened. Although the scale of the decline was limited

Dean Leo 05:52 2024-12-02 UTC+2

Hot Forecast for EUR/USD on November 27, 2024

As expected, the Federal Open Market Committee meeting minutes didn't reveal anything new. Given the dollar's excessive overbought condition, a continuation of the corrective movement, that is, some strengthening

Dean Leo 06:24 2024-11-27 UTC+2

Hot Forecast for EUR/USD on November 26, 2024

Despite some fluctuations, the market is essentially at a standstill. This pattern may persist until the FOMC meeting minutes are published this evening. A significant reaction is only likely

Dean Leo 06:46 2024-11-26 UTC+2

Hot Forecast for EUR/USD on November 25, 2024

The preliminary PMI data for the Eurozone delivered a negative surprise. Instead of expected growth, all indicators declined. The Services PMI fell from 51.6 to 49.2 (forecast: 52.0)

Dean Leo 06:26 2024-11-25 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.