GBP/USD Price Forecast – British Pound Continues to Respect ConsolidationThe British pound initially fell during the trading session on Monday but then turned around to show signs of resiliency as the 1.41 level continues to attract a certain amount of attention.
The British pound has gone back and forth during the trading session on Monday, but most importantly has held onto the 1.41 handle for support, and it does in fact look a lot like a market that is trying to recover and stay within the overall consolidation that we have been in for a while. The 1.42 level above continues to be massive resistance, so if we can break out above there, at least on a daily close, then I believe that the market probably goes looking towards the 1.45 handle over the longer term. After all, that is the next major big figure.
GBP/USD Video 15.06.21
To the downside, I see the 50 day EMA coming into the picture and offering a bit of help as far as support is concerned, and that of course is something that needs to be paid close attention to. With that situation being so obvious, I would anticipate that perhaps there would be a fresh buying pressure in that area based upon the technicals alone, and then of course perhaps more importantly, the overall trend which has been so strong for so long.
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If we were to break down below there, then I believe that the market will look at the 1.40 handle as major support, as it was once previous resistance and of course it is a large round number that will attract a lot of attention for that reason alone. Because of this, I have no interest in shorting this pair whatsoever and I do think that it is only a matter of time before we see it reach back towards the highs as we have been chipping away at major resistance for a while.
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