GBP/USD Price Forecast – British Pound Pulls Back From Big Figure

The British pound has initially tried to break above the 1.40 level during the trading session on Tuesday but gave back the gains near the 1.40 level, an area that of course has been a bit difficult. At this point in time, the market is likely to see an attempt to break out above there, but quite frankly I think we got there far too quickly during the Monday session. We needed to pull back in order to pick up a little bit of momentum and take off. I think that is more than likely what happens, but we need to see some type of pullback in order to take advantage of momentum building.

GBP/USD Video 21.04.21

At this point, this pair is all about the US dollar, and the US dollar is most certainly getting hit rather hard. To the downside, I see the 1.3750 level is a massive support level, but to be honest I would be quite surprised to see this market get anywhere near there. If it did, then I think there would be plenty of value hunters but obviously it would be a bit of a significant move that would have to be monitored closely.

We are still in a bullish trend, and at the end of the day that is the most important thing to pay attention to. The candlestick from Monday was overextended, but typically when you close the very top of a long candlestick like that, there is a certain amount of follow-through so I would certainly anticipate that we will get a buying opportunity on shorter time frames.

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