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GBP/USD Price Forecast – British Pound Continues to Take Off

By:
Christopher Lewis
Published: Feb 15, 2021, 14:34 UTC

The British pound continues to rally based upon the idea of the more coronavirus vaccines in the United Kingdom.

GBP/USD Price Forecast – British Pound Continues to Take Off

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The British pound has rallied a bit during the trading session on Monday to reach the 1.39 level. That is an area that is a large, round, psychologically significant figure, but at the end of the day it is only a minor handle. The real target is probably the 1.40 level because it is much more psychologically important, but when you look at the weekly chart it is probably closer to the 1.42 level.

GBP/USD Video 16.02.21

Having said that, we will probably struggle to go straight up in the air forever, so a pullback would make a certain amount of sense. However, I am not looking to short this market, rather I am looking to buying dips going forward. Given enough time, I believe that the buyers will come in to pick up this market every time it drops, and I believe that the 1.3750 level is an area that offers a major floor in the market going forward. That being said, we should also focus on the fact that a lot of people still have faith in the idea of stimulus coming out the United States, so that could come back into play as well, as the stimulus should in theory drive down the value of the US dollar.

If that is going to be the case, then I continue to buy dips going forward as long as we can stay above that previous 1.3750 level. Longer-term, I do believe that the British pound goes looking towards the 1.42 handle, but it is going to take a significant amount of time to get there to say the least.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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