GBP/USD Price Forecast – British Pound Continues to Push Higher

The British pound has rallied a bit during the course of the trading session on Wednesday as we await the Federal Reserve meeting announcement. That being said, the market has been rallying for a while and it is worth noting that it did bounce from the 50 day EMA during the previous session. Technically speaking, this is a very bullish sign, and the market looks as if it is going to try to break out to the upside. That being said, if we break above the 1.42 handle, then it is possible that the market takes out to the upside and goes looking towards the next major resistance barrier.

GBP/USD Video 17.06.21

The next major level that people will be watching of course is the 1.45 handle, so I think that might be your target if we can get above this obvious resistance barrier. To the downside, I believe that the 50 day EMA continues offer support right along with the 1.40 handle, which of course is a large, round, psychologically significant figure, and an area that has shown itself to be resistive in the past. Because of this, “market memory” could come into play and a lot of people would be looking to get involved.

If we break down below the 1.40 handle, then it is possible that we could see the market looking towards the 1.37 level. Nonetheless, I am more bullish than bearish, so I do think that it is only a matter of time before we try to make that major breakout above. I would wait until we get a daily close above there though.

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