GBP/USD Price Forecast – British Pound Gives Up Early Gains

The British pound initially tried to rally during the Monday session, but gave back the gains in order to show signs of weakness again. This has been very difficult to get a handle on, because quite frankly this is a market that I think continues to see noisy behavior and with that in mind it is likely that it will chop back and forth right above this 50 day EMA.

GBP/USD Video 27.04.21

The shape of the candlestick of course is very weak, and as a result it is difficult to imagine a scenario where we simply shoot straight up in the air. However, if we were to break above the top of the range for the trading session on Monday, then it could signal that we are ready to continue the uptrend. Keep in mind that the 1.40 level above has been like a brick wall, and as a result it is going to take something rather special to get above it. If we do, then we have the ability to go looking towards the 1.42 handle.

The real question now is whether or not the United Kingdom is truly going to open up the way we once thought it was going to after the pandemic, and of course if perhaps the US dollar is oversold? I anticipate that we are going to see a lot of noise in general, and I would not be surprised at all to see this market try to test the recent lows just below the 1.3750 level. If we were to break down below there, then we will probably have to look towards the 1.35 level for support.

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