GBP/USD Price Forecast – The British Pound Continues to Form BaseThe British pound initially fell rather hard during the trading session on Friday, and then turned around to form a somewhat positive candlestick.
The British pound initially pulled back during the course of the trading session on Friday to reach down towards the 1.3725 handle, before turning around and bouncing. At this point, the market is sitting at the 1.38 level, trying to break out to the upside. After all, the market looks as if it is trying to reach much higher and form a base above a significant amount of support. The 1.3750 level has been important, and of course we have seen support all the way down to the 1.35 handle.
GBP/USD Video 19.04.21
If we were to break down below the 1.35 handle, then it is likely that the market would break apart and go quite a bit lower. That being said, the market is likely to find a lot of trouble between here in the 1.35 level in order to break down. If we were to break out to the upside, then I believe that we will look towards 1.40 level, which is a large, round, psychologically significant figure, and an area where we have seen a lot of trouble in the past. If we were to break out above there, then it opens up the possibility of a move towards the 1.42 handle, which is a massive resistance barrier on the weekly chart. I do believe that getting above there could open up a huge move higher, but we have a ton of work to do between now and then so I would not necessarily count on that in the short term. All things being equal, I think we continue to see a lot of noise, but this is a market that will eventually find its footing.
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