GBP/USD Price Forecast – British Pound Faces Familiar Resistance

The British pound has rallied a bit during the course of the trading session on Friday, breaking above the 1.42 handle. If we do continue to go higher, the market is likely to go looking towards the 1.45 handle. In the short term, I believe that a pullback is more likely than not, as it should be an opportunity to build up momentum. The 1.42 level has been very difficult to deal with, and therefore I think we may have some work to do. Underneath, I see the 1.40 level as a major support level, so it certainly would be worth paying attention to. This is especially true as the 50 day EMA is starting to reach towards that area.

GBP/USD Video 24.05.21

Looking at this chart, I think that there is a certain amount of support that will be found at the 1.40 handle now that the “stars are lining up.” Furthermore, the US dollar has been suffering so it should not be a huge surprise to see the British pound continue to rally against it. The question now is whether or not we continue to be able to go higher. At this point in time, the market continues to grind away at the upside and try to work off the selling pressure above. At this point in time, I do believe that the market is going to see value hunters come in every time they get an opportunity to on the occasional drop. The US dollar is under an immense amount of pressure in general, so that of course should eventually turn this around on the drop.

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