GBP/USD Price Forecast – British Pound Continues to See Support
The British pound initially fell to kick off the trading week on Monday but found enough support at the 1.3750 level to turn around and rally again. We are hovering around the 50 day EMA and at this point we have to ask questions about whether or not this has been a pullback in a move that is going to go much higher, or are we see the beginning of a breakdown? As things stand right now, this looks like a pullback that traders will be looking to get involved with.
GBP/USD Video 30.03.21
The 1.40 level above of course has been massive resistance, but also had been pierced once before as we went to the longer-term resistance at the 1.42 level. The 1.42 level on the weekly charts is a major resistance barrier that had been important more than once and therefore it does not surprise me that we would have to pull back in order to finally make a move above that level. So far, I see nothing on this chart to suggest that we are not going to be able to at least challenge that area, so with that in mind I am still of the mind that you should be buying dips.
All things been equal though, if we were to turn around and take out the 1.35 level to the downside, then we could see a complete trend change. Until then, I have to assume that the bullish traders will return given enough time. That being said though, one needs to be cautious with their position size and perhaps scale into a bigger position.
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