GBP/USD Price Forecast – Crushes Back Into Familiar Level

The British pound has pulled back again during the trading session on Wednesday to reach down towards the 1.3750 level yet again. This is an area that has been supportive more than once, so it is most certainly worth paying attention to. The British pound has been much stronger against the US dollar than most other currencies, so I think if you are looking to short the US dollar, that might be what are your best choices. That being said, it is worth noting that the EUR/GBP pair has certainly gotten very bullish, at least in the short term.

GBP/USD Video 08.04.21

If we break down to a fresh, new low, then I think this market goes looking towards the 1.35 handle, an area that will also be backed up by the 200 day EMA. Breaking down below all of that would finally kill the trend to the upside that we have seen for some time now, and therefore I think I would become aggressively short at that point. This is a market that has plenty of support underneath though, so I am currently looking for some type of supportive candlestick to start buying again. I will use the daily close in order to get involved, but right now I would fully anticipate that there should be a certain amount of support in this general vicinity.

To the upside, I believe that the 1.40 level will continue to be important as resistance, so if we were to break above there then I think the British pound goes looking towards the 1.42 level above, which has been resistance on the weekly chart for some time.

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