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GBP/USD Price Forecast – British Pound Erases Early Losses

By:
Christopher Lewis
Published: Jun 2, 2021, 13:52 UTC

The British pound has fallen significantly during the trading session on Wednesday only to turn around and show signs of bullish pressure.

GBP/USD Price Forecast – British Pound Erases Early Losses

In this article:

The British pound has initially fallen during the trading session on Wednesday only to turn around and show signs of life again. Ultimately, this is a market that continues to look as if it is going to pressure this 1.42 handle, which is a very significant level. If we can break above there cleanly, then it is likely that the market goes looking towards 1.45 handle. That of course is a large, round, psychologically significant figure, and therefore I think that we continue to go going higher.

GBP/USD Video 03.06.21

When you look at this market, you can clearly see that we have been in an uptrend for a while so it should not be a huge surprise to suggest that perhaps we will take off. That being said, it is likely to be very noisy in this general vicinity as we have seen a lot of chop recently. Nonetheless, it is probably only a matter of time before the pressure chips away at the resistance, allowing the market to go much higher. With that in mind, I believe that the market could go looking towards the upper ranges due to the jobs number.

To the downside if we break down below the 1.41 handle, then it opens up the possibility of a move down to the 1.40 handle. The 1.40 handle of course is backed up by the 50 day EMA which is rising and therefore likely to offer dynamic support as it has multiple times in the past. Because of this, I look at that as your short-term “floor in the market” when it comes to the overall trend. I have no interest in selling at this point in time.

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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