GBP/USD Price Forecast – British Pound Finds Same Resistance

The British pound has rallied a bit during the course of the trading session on Tuesday to show signs of trying to pick away at the resistance barrier. However, we have seen quite a bit of a pushback from there and we did up forming a less than enthusiastic candlestick. Nonetheless, we are in an uptrend and therefore I think it is only a matter of time before we chip away at this barrier to go much higher. If we can break out and close above the 1.42 level on the daily chart, then I think the market goes looking towards the 1.45 handle. The 1.45 handle is a large, round, psychologically significant figure that could attract a certain amount of attention.

GBP/USD Video 26.05.21

At this point in time, we do pull back it is likely that we would find plenty of support at the 1.40 handle, because it is a large, round, psychologically significant figure and also a place where we had broken out of previously. Beyond that, we also have the 50 day EMA crossing that level and it should be widely supported because of this. Ultimately, the market does look as if it is ready to go higher, and with the US dollar falling in general, then it is likely that the market would continue to go higher but obviously we have a lot of work to break through there. Ultimately, I think the one thing that we would probably be able to count on is the fact that we will have a lot of choppy volatility. With this being the case, I think what we have got here is a scenario that we have a lot of work to do but clearly the longer-term outlook is higher.

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