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

The British pound has initially tried to rally during the Wednesday session but then gave back the gains to rollover a bit to reach towards the 1.39 handle midday. Ultimately, this is a market that has a lot of buyers underneath based upon the bullish candlestick that we had seen, so I do think that the buyers are underneath and waiting to get involved. That being said, looking for dips and signs of strength will probably be the best way to go. The 1.40 level above offered resistance, as it has multiple times so it should not be a huge surprise that we pulled back from there.

GBP/USD Video 22.04.21

Furthermore, when you see the massive candlestick from the Monday session, it should not be a surprise that we would struggle to simply break through that resistance barrier rapidly. If we did, then the market is likely to go looking towards 1.42 handle, which was the recent high that had been so difficult to overcome. With all of that, I think that the market will eventually try to correct towards the upside but obviously we need to give back some of that frothy behavior in order to find stability.

I am looking at the longer-term charts and I recognize that we most certainly have a significant amount of underlying pressure to pick this market up, so at this point in time I do not have any interest in trying to short it, I think that this will end up being a nice pullback that we can take advantage of as the US dollar continues to get hit.

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