GBP/USD Weekly Price Forecast – British Pound Breaking Out

The British pound has broken to the upside during the course of the week, slicing through the 1.3750 level. That was an area that has been very difficult to get above, so being able to break above there of course is a very bullish sign. Ultimately, the market looks as if it is going to try to go to the top of the consolidation area from late 2017, meaning that the British pound could eventually get all the way up to the 1.42 handle. Obviously, that is going to take some time to get there but given enough time I do think that is what we will end up seeing.

GBP/USD Video 15.02.21

I like the idea of buying dips on short-term charts, but if you are a longer-term trader, then you can simply assume that as long as we stay above the 1.35 handle, the market is still very strong and still going to go higher. Furthermore, the stimulus in the United States is probably going to continue to weigh upon the greenback, while the British pound is being rewarded due to the fact that there have been more vaccinations in the United Kingdom than most others. With that in mind, the idea is that the British economy gets back to “normal” much quicker than many other places, and therefore people have been buying the pound in a reactionary move. All things being equal, I do think that this is a bullish market that will continue to find more buyers over the longer term but that does not necessarily mean that is going to be easy.

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