GBP/USD Price Forecast – British Pound Recovers After Initial Fall

The British pound initially fell during the trading session on Monday, but as you can see has recovered quite nicely as we continue to reach towards the 1.42 handle. This is an area that has been a massive resistance barrier, and if we can break above the most recent highs, somewhere near the 1.4233 level, then it is very likely that we could go much higher, perhaps reaching towards 1.45 level which is my target.

GBP/USD Video 08.06.21

That being said, the market is very choppy, and it does look like we are trying to build up a bit of pressure to finally break out. I do not necessarily think that we are going to do so right away, but it certainly looks as if we are being very resilient and will eventually wear out the barrier to the upside. All things being equal, the market has plenty of support underneath at the 1.41 handle, and then below there at the 50 day EMA. Ultimately, this is a market that is in an uptrend so that is really how you have to think about it from a longer-term standpoint.

The candlestick of course looks a little bit like a hammer, so that adds more credence to the idea of support, so ultimately this is a market that eventually gets some reason to break out, perhaps inflation data coming out the United States or the United Kingdom. Ultimately, the market has been moving from the lower left to the upper right, which of course is the easiest way to tell which direction we are going longer term.

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