GBP/USD Price Forecast – British Pound Pulls Back From Shooting Star

The British pound has initially tried to rally during the trading session on Friday but gave back the gains to plunge much lower. That being said, we still plenty of support below and I think this is simply a bit of profit-taking heading into the weekend and the fact that the US dollar may have been oversold against multiple currencies. Because of this, I think that you need to pay attention to the 50 day EMA underneath, and of course the massive double bottom that has shown itself just below there.

GBP/USD Video 03.05.21

Even if we break down below the double bottom, there is even more support down at the 1.35 handle, especially as the 200 day EMA is reaching towards that level. With that being the case, the market is likely to see a lot of interest in this area as well. Nonetheless, we are in an uptrend longer term and I think we are simply trying to work off the massive amount of fraud that almost certainly would be in this market after going straight up in the air for so long.

One thing you do need to pay attention to as yields in America though, because if they do start to rise quite rapidly again, that could have people looking at the US dollar in a different light. In the short term, the market is likely to see buyers underneath, so I suspect at this point in time the first signs of a bounce will attract a significant amount of attention. A little bit of patience could go a long way here.

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