GBP/USD Price Forecast – British Pound Advances to Kickoff Week
The British pound has rallied a bit during the trading session on Monday to continue to show signs of life again. All things being equal, the market has been recovering for a while so it should not be a huge surprise that Monday was more of the same. Furthermore, the jobs number on Friday was excellent, and the market is just now having the opportunity to react as far as Wall Street is concerned. Because of this, it is very likely that we will see a continued upward pressure, perhaps reaching towards the 1.40 level above. That is an area that I have seen a lot of resistance previously, so it does make quite a bit of sense that there would be more there.
GBP/USD Video 06.04.21
To the downside, the 1.3750 level continues to be important, and it should be noted that the last two weekly candlesticks were both hammered, so that of course is a bullish sign as well. With all that being said, I do think that eventually we go towards that 1.40 level, and if we can break above there, then it is very likely that we go looking towards the 1.42 handle after that. The 1.42 handle has been massive resistance on the weekly timeframe, so it is clear that we need to be paying close attention to it.
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If we do break above that level, then it is likely that we would go looking towards the 1.45 level after that. That of course is a large, round, psychologically significant figure that a lot of people will be paying close attention to. That being said, it is likely that DIPs will continue to be bought into, as there is obviously a lot of strength here.
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