GBP/USD Price Forecast – British Pound Continues to Levitate

The British pound has gone back and forth during the trading session on Thursday to dance around the 1.36 level yet again. This is an area that extends down to the 1.35 handle that offers a significant amount of support. Ultimately, a pullback to this area makes quite a bit of sense, as it was previous resistance. The 50 day EMA sits underneath, which is starting to turn to the upside as well, so that suggests that the short-term momentum is starting to increase even further, so there is nothing on this chart that tells me we should be looking to sell. In fact, I look at pullbacks as potential buying opportunities in order to get long again.

GBP/USD Video 08.01.2021

To the upside, the 1.37 level continues to be crucial, at least from the short-term perspective. If we can break above, there then I believe that the British pound has the ability to go looking towards the 1.40 level. That of course is a large, round, psychologically significant figure, and something that will attract a certain amount of attention. However, it also acts as a bit of a magnet for price in the uptrend as well.

That being said, we have a lot of noise when it comes to the British pound these days, so that does not necessarily bode well for a quick and easy move, but it does seem as if the buyers are still very much in control. Further stimulus coming out the United States will continue to work against the value of the greenback as well.

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