GBP/USD Price Forecast – British Pound Continues to Hover

The British pound has initially fallen during the trading session on Wednesday but then turned around to form a bit of a hammer. That being said, the market is likely to continue to find buyers on dips, and as a result it looks as if the British pound is going to try to break above the 1.3750 level again. If you can break above there, then the British pound is likely to go much higher, perhaps going as high as 1.40 level above. The 1.40 level is an area that will attract a lot of attention due to the large figure, and looking back at the previous chart, you can also take a look at the way price has reacted to those levels historically.

GBP/USD Video 04.02.21

The British pound is historically cheap at this level, so I think that as soon as we get a reason to start selling the US dollar again, the British pound will in fact go much higher. The 50 day EMA underneath sits at the 1.35 handle, and I think that will offer a certain amount of technical support as well. That being said, the US dollar has been oversold and I think we are getting a little bit of a pushback. I think given enough time we will find buyers, but if we break down below the 1.35 level, then it is likely that we could go down towards the 200 day EMA as well. That being said, this is a market that I think continues to see a lot of volatility so keep that in mind as well. Nonetheless, we are still very much in an uptrend despite the fact that we have rolled over just a bit over the last couple of weeks.

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