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

The British pound initially fell during the trading session on Monday to, only to find buyers in this general vicinity again. I think we are simply grinding sideways in order to try to figure out what we are going to do longer term. If we can get a daily candlestick that closes well above the 1.42 handle, then I think this pair is likely to go much higher. At that point, I would be aiming towards the 1.45 handle.

GBP/USD Video 25.05.21

That being said, it is obvious that we are struggling in general and therefore I think we are simply trying to build up the necessary momentum to make this happen. The big help here of course is the fact that it is the US dollar we are measuring the British pound against, so therefore it does get a little bit of support based upon that alone. On pullbacks, I think there will continue to be plenty of buyers, not only at the 1.41 handle that we have seen, but most certainly at the 1.40 handle as it is not only a large, round, psychologically significant figure, but also an area where we had seen resistance previously. In fact, that would be a “retest of the breakout” that we just had.

I do not have any interest in shorting this market until we break well down below the 1.3750 level, so in other words it is not really much of a thought at this point as the British pound continues to be one of the better performers over the last several months. I see no reason to fight this trend, I am just looking for a confirmation of the breakout or an opportunity to buy the British pound cheaper.

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