GBP/USD Price Forecast – British Pound Continues to Face Wall of Death

The British pound has initially tried to break out to the upside during the trading session on Tuesday but has found enough resistance to turn right back around as the 1.42 level has become a bit of a “wall of death” for the buyers. When you look at the longer-term charts, this is an area that of course is going to be important, so it is not a huge surprise that we continue to struggle to get above there, but quite frankly I think it is a bit surprising that it is taking this long. That being said, I like the idea of buying dips, as it should give us an opportunity to pick up a little bit of value.

GBP/USD Video 02.06.21

To the downside, the 1.40 handle is a major support level, so I do not think we get below there, but in the meantime the 50 day EMA is also starting to come into the picture in that general vicinity. When you look at the chart, you can clearly see that we are struggling to make the move higher. I think this is going to continue to be the story here, so choppy and nonsensical trading is what I would expect for the rest of the week, especially as we are waiting to see what is going to come out with the jobs figure on Friday. Because of this, I keep the upside bias, but I also recognize that a lot of patients will be needed in order to see this market work itself out.

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