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

The British pound reached higher during the day on Thursday to look towards the 1.40 level. That is an area that of course is a large, round, psychologically significant figure, and as a result I do think that there is going to be a little bit of a barrier to overcome. If we were to break above there on a daily close, then I think the market probably goes looking towards the 1.42 handle. A pullback from this level could cause a little bit of a retest of the 50 day EMA or perhaps even the 1.3750 level underneath.

GBP/USD Video 12.03.21

All things been equal, I do not have any interest in shorting this pair, but I also recognize that the British pound has been a little of her stretched at the point. The 1.35 level underneath is massive support, so it is not until we break down below that level that I would even consider shorting this market. This is a market that has recently tested the 1.42 handle, which is a major resistance barrier on the weekly timeframe. If we were to break above there, then it is likely that the British pound will continue to grind much higher.

If we did break above the 1.42 handle, then the market is likely to go looking towards the 1.45 handle. After that, then we could open up the possibility of a significant attempt to reach towards the 1.50 level. If we were to turn around a break down below the 1.35 handle, then it opens up a possible move down to the 1.30 level.

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