16.09.202112:24 Forex Analysis & Reviews: GBP/USD analysis and forecast for September 16, 2021

At the beginning of today's article on the pound/dollar pair, I would like to note that trading on GBP/USD is also far from understanding the further price movement.

Daily

In particular, this can be judged by the candle for September 14. After a sharp rise up and an attempt to exit the Ichimoku indicator cloud, a sharp 180-degree reversal followed, as a result of which a candle with a huge upper shadow and a bearish body appeared on the daily chart. However, the very next day, the GBP/USD pair showed growth, the reason for which, from the point of view of the fundamental component, was positive data on the UK consumer price index. In the technical context, I will highlight the 50 simple moving average, which provides strong support to the pair and does not let the rate lower yet. It is characteristic that yesterday's trading ended right on the black 89 exponential moving average, which the bulls cannot go up on the pound at the moment. Today, the pair has already gone up and down, and right now, it is trading near the opening price of today's trading, leaving shadows at the top and bottom. The expectations that the pair will face strong resistance when trying to exit from the Ichimoku cloud and break through the important level of 1.3900 are fully confirmed. Compared to the euro/dollar, GBP/USD is trading more broadly and in a wider range of 1.3911-1.3725. The upper limit of this range, as already noted, is insured by a similar border of the Ichimoku cloud, and the support at 1.3725 is strengthened by the orange 200 exponential moving average. In this regard, I do not exclude that the pair will continue to trade in the designated range for some time, and the further prospects of GBP/USD will indicate a true exit from the corridor of 1.3911-1.3725. If this assumption is correct, then, for now, it is better to tune in to trading in the designated range, and we will look for points for entering the market at smaller time intervals.

H4

As can be seen on the four-hour chart, the pair fell from 1.3911 but managed to find support near the 89 and 200 exponential moving averages. If we assume that there was a rebound down when trying to break 1.3900, it now looks complete. As we can see, 50 MA also provides fairly strong support for the quote. If the current candle retains its current shape and closes above 50 MA, leaving a long shadow at the bottom, this may signal a subsequent growth, which means purchases with targets in the area of 1.3890-1.3910. If not only 50 MA but also 89 with 200 exponential moving averages are broken, after fixing lower on the pullback to them, you can plan sales with targets in the area of 1.3750-1.3730. And at the end of this review, what fundamental factors can affect the course of trading on the pound/dollar pair today. And this is the American statistics on retail sales and initial applications for unemployment benefits, which will be published at 13:30 London time.