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GBP/USD Price Forecast – Pound Continues to Struggle at Same Level

By:
Christopher Lewis
Published: Feb 1, 2021, 15:05 UTC

The British pound has initially shot higher during the trading session on Monday, but we continue to see the resistance at the same level.

GBP/USD

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The British pound initially rallied a bit during the trading session on Monday but gave back the gains near the 1.3750 level yet again. Ultimately, this is a market that continues to see a lot of upward pressure given enough time though, so I do think that what we are looking at is a scenario that the market is trying to build up the necessary pressure to go higher. However, the US dollar is oversold, so it should not be a huge surprise to think that perhaps we would get a little bit of a pullback occasionally. Nonetheless, the British pound is showing its strength across the Forex world, so I think it is probably only a matter of time before we break out.

GBP/USD Video 02.02.21

All of that being said, you need to be very cautious about jumping into the market right away, because quite frankly it is so noisy. I do think that there is plenty of support underneath though, so I would be more than willing to take advantage of it if and when it shows up. The shape of the candlestick clearly shows just so much trouble there is above but ultimately, I do think that we get an opportunity to buy the breakout and go looking towards the 1.40 level based upon the Bank of England refuting any idea of negative interest rates, and of course the fact that the COVID-19 vaccinations in the UK seem to be going much better than other places around the world.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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