GBP/USD Price Forecast – British Pound Threatening Major Resistance

The British pound has rallied significantly during the course of the trading session on Tuesday to reach towards the 1.42 handle and even break above it. That being said, the market is facing a significant amount of resistance just above, so if we can break out above that area, the market could then start to look towards the 1.45 handle. That is the longer-term target, so I think at this point in time we will eventually get there but it may be very noisy in the process. Short-term pullbacks should continue to offer quite a bit of value the people are willing to take advantage of.

GBP/USD Video 19.05.21

Furthermore, the 1.40 level was previous resistance, and it should now be support. Ultimately, I think at this point in time we will see traders come into focus on this pair as it is an area that is so important. All things been equal, this is a market that is in a bullish run, and therefore you cannot be a seller. Unfortunately, many retail traders are out there looking to play the “reversal signal” at the 1.42 handle without pay attention to the fact that the US dollar is on its back foot in general. This is not to say that it cannot turn around, but the most obvious play is to get long of this market on value and of course momentum to the upside. The United Kingdom continues to look bullish in general, and I think that will be reflected in its currency. With the Federal Reserve nowhere near tapering, it should continue to work against the value of the greenback.

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