GBP/USD Price Forecast – British Pound Touches Major Support Level
The British pound has fallen significantly during the trading session on Tuesday to reach down towards the 1.3750 level. That is an area that previously had been resistance, so now it is likely to offer support just as we have seen. At this point in time, if we bounce from here then we probably go looking towards the 1.40 level, an area that has been massive resistance previously. All things being equal, we are in an uptrend, but we are also starting to see significant moves made by the US dollar. Because of this, it is going to be a very choppy situation.
GBP/USD Video 24.03.21
If we did break down below the 1.3750 level, then I think we will probably go looking towards the 1.35 handle underneath. That is a large, round, psychologically significant figure that of course will attract a certain amount of attention in and of itself. Because of this, we will need to pay attention to the yields coming out of the United States, as higher yields will almost certainly drive up the value of the greenback. With Jerome Powell speaking in front of Congress, we could have further volatility in the greenback over the next couple of days. With all this being said, the question now is whether or not the 1.42 level has been resistance yet again? It has been important more than once on the longer-term charts, so the question now is whether or not we have seen the top? I do not know that is the case, but we certainly will be finding out rather soon.
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