GBP/USD Price Forecast – British Pound Sits Just Above 50 Day EMA

The British pound has pulled back a bit during the course of the trading session on Tuesday as we are testing the 50 day EMA. As I record this, we have bounced slightly from there, and it is worth noting that the British pound has been extraordinarily resilient. The 1.3750 level underneath should continue to be support, just as the 50 day EMA could be. Ultimately, this is a market that continues to look as if it is going to outperform many of the other currencies against the greenback. After all, as the US dollar was strengthening so rapidly against gold, the Euro, etc., this pair was relatively calm.

GBP/USD Video 07.04.21

To the upside I see the 1.40 level above as a large, round, psychologically significant figure that we need to pay close attention to, as it had recently caused quite a bit of resistance. If we can break above the 1.40 level, then it opens up the possibility of a move towards the 1.42 handle above which is a major resistance barrier on the weekly chart, so it does make quite a bit of sense that if we do get there, it may take several attempts to finally break out. The market may have just broken out of the falling wedge, which of course is a bullish pattern as well. As things stand right now, I have no interest in shorting the British pound, because if I am looking to buy the US dollar, I will probably do it against other currencies that may move a little quicker like the Australian dollar. If we broke down below the 1.35 handle, then I might be convinced to start selling the Pound, but right now that does not look likely.

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