GBP/USD Price Forecast – British Pound Stalling at Major Resistance

The British pound has rallied just a bit during the trading session on Thursday that sent the market testing the 1.42 level testing the major resistance barrier on the weekly chart. This has been a target of mine for quite some time, so the fact that we got to that area tells me that the market is more than likely to continue to see a little bit of a pullback. If we do pull back from here, I think there are plenty of areas underneath that would offer buying opportunities. The 1.40 level would be the initial area that I think traders would be looking to get involved with. After that, the next area is probably closer to the 1.3750 level, which was the scene of a major breakout previously.

GBP/USD Video 26.02.21

The 1.3750 level being broken to the upside is not only an area that everybody will be paying attention to because of the previous breakout, but the fact that the 50 day EMA is starting to reach towards that area. This is probably the most preferable set up if we get that opportunity, but we may or may not be that lucky. Keep in mind that the British pound continues to see money flowing into the market due to United Kingdom inoculating so many people. Furthermore, the economy is starting to open up so that should bring in more money into the market yet as well. At this point in time, I do not like the idea of buying a breakout above the 1.42 level, because that would be even more parabolic. Simply waiting for an opportunity sometimes is exactly what traders have to do.

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