GBP/USD Price Forecast – British Pound Breaks Out

The British pound has broken to the upside during the trading session on Tuesday, finally breaking above the 1.3750 level that has been such a difficult level to break out of. Now that we are clearing this resistance, it is very likely that the British pound continues to go higher. I believe that short-term pullbacks at this point in time will be buying opportunities and we will more than likely go looking towards the 1.40 level next.

GBP/USD Video 10.02.21

This is not to say that it will necessarily always be easy to go higher, but we have leapt over some type of barrier. Because of this, I do believe that we will eventually have enough momentum to go higher and I think that value hunters will continue to look at this market as one that you should be buying dips in. The market has been building up this pressure, so I do think that we could see a lot of people piling into this trade.

That being said, I believe that the US dollar is going to be somewhat supported against other currencies, so that may show itself in this pair, not necessarily in strength for the greenback, but more or less that it may not be a “runaway train” like one might think based upon the technical analysis. In other words, I believe that this is going to be more of a grind higher than anything else. This is because there are so many concerns around the world right now when it comes to the global economy, and of course that does suggest at least a minimal amount of support for the US dollar under all circumstances.

For a look at all of today’s economic events, check out our economic calendar.