GBP/USD Price Forecast – British Pound Continues to Pressure Major Resistance

The British pound has rallied significantly during the course of the trading session on Friday, as we have reached towards the 1.42 handle yet again. This is a very strong looking candlestick, and therefore it is likely that what we are going to see is resistance just above. Quite frankly, although I like this pair for a longer-term move, it is obvious that there is a ton of resistance just above this big figure. We would need to close with a strong green candle well above the 1.42 handle before I would put money to work.

GBP/USD Video 07.06.21

On the other hand, I do like the idea of buying dips if we can get a little bit of value, because quite frankly this is a pair that is flagging to the upside, but we have a massive amount of resistance just above that continues to cause a bit of a headache, but if we can finally break out above the highs that we recently made, then this pair probably continues to grind much higher. All things been equal, this is a market that cannot be shorted, but it is difficult to buy it right here into the major resistance level.

Nonetheless, I do fully anticipate that the market is probably going to go looking towards the 1.45 handle, an area that is my intermediate target, but I also recognize that you are going to have to be very patient to get there. If we can get some type of major breakdown in the US dollar overall, that is probably going to end up being the catalyst for this pair to march towards that region.

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