GBP/USD Price Forecast – British Pound Bounces From Previous Breakout

The British pound has pulled back a bit during the trading session on Friday, before reaching towards the previous breakout point. This is a typical move in the markets, you break above a major resistance barrier, and then need to pullback in order to reaffirm it. At this point, it looks like traders are going to continue to try to push the British pound higher due to the fact that the GDP numbers were a bit better than anticipated, and of course the fact that the vaccination has been far ahead in the UK than it has in other places. The economy has been locked down, but we are looking likely to continue to see a move towards normalcy, and of course Brexit is in the rearview mirror finally.

GBP/USD Video 15.02.21

To the upside, believe that the market probably will be attracted to the whole, as it is a large, round, psychologically significant figure. Furthermore, the market is likely to see a lot of noise in that general vicinity. The 1.40 level of course is an area that will cause a lot of headlines noise, so that is something to keep in mind. To the downside, if we were to break down below the 1.3750 level again, that could open up the British pound for further losses down to the 50 day EMA, but right now that is not the base case scenario from what I can see. Furthermore, the stimulus in the United States could continue to work against the value of the greenback, and that is another reason to think that this could go higher.

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