GBP/USD Price Forecast – British Pound Continues to Flirt With Highs

The British pound has gone back and forth just below the 1.42 handle, an area that is major resistance on longer-term charts. Ultimately, this is a market that has been very noisy just below this level, which makes quite a bit of sense considering that there had been so much in the way of resistance previously. With this, it should not be a huge surprise that we have struggled to break out above here, but if we do manage to get some type of move above the 1.4233 level, then it would be a significant break out that could send this market towards the 1.45 level.

GBP/USD Video 01.06.21

The 1.41 level underneath is short-term support, but I think that the 50 day EMA is even more supportive. At this point time, I think that short-term pullbacks will be bought into, as we have been in an uptrend for quite some time, and furthermore I believe that the US dollar weakness could continue to be a major propellant of this pair. Because of this, I do not have any interest in shorting this market, but that does not necessarily mean that you need to be involved in it. I would wait for that breakout start buying, because you could be sitting on “dead money” or risk some type of pullback between now and then. Keep in mind that the Monday session was Memorial Day, so that means that there was little in the way of liquidity later in the session. That being said, when you look at the longer-term charts, it is to the upside that you have to be a trader more than anything else.

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