GBP/USD Price Forecast – British Pound Continues to Struggle With Same Barrier

The British pound has rallied a bit during the course of the trading session on Friday, as the jobs number in America came in at just above 200,000 added for the previous month, and of course there was a downward revision from the month before. Many pundits had a number of 1 million or more jobs added, so it should not be a surprise that the British pound got a bit of a boost from there. However, it should be noted that the yields in America were dropping so that could have been a bit of a boost, but the most important thing to pay attention to is the 1.40 handle, an area that has been like a “brick wall” for this market. With that being said, I think it is probably only a matter of time before we pull back again, so the question is whether or not we can continue to build up the necessary momentum?

GBP/USD Video 10.05.21

At this point, it does not look like it is going to be very easy to get above that barrier, so I think will continue to see this market give back gains every time we get close to it. That being said, I do like the idea of buying short-term dips, as the 50 day EMA underneath continues to be supportive. I think at this point in time we simply have no idea as to where to go now. We at the very least need to build up the necessary momentum to try to break to the upside, which obviously is still lacking. Look at a short-term back-and-forth type of situation more than anything else.

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