GBP/USD Weekly Price Forecast – British Pound Attempts Break Out

The British pound has rallied significantly during the course of the trading week to try to take out the crucial 1.42 handle. This is an area that has been important previously, but the fact that we are closing much closer to it than the last time that we reached there tells me that the market is likely to see a lot of buyers on dips, so I think at this point in time it is very likely that we will continue to see more of a push to the upside than anything else. I think it is only a matter of time before we break out, so if we can clear the top of the candlestick for the week, that could be the market taken out.

GBP/USD Video 24.05.21

More likely than not though, we could get a little bit of a pullback that we can take advantage of. The 1.40 handle is an area that was significant resistance that traders will pay close attention to. On a pullback, the market could go looking towards the 1.40 level as a potential supportive level that traders will be looking to take advantage of. The market is bullish, so regardless I have no interest whatsoever in trying to short this situation.

Furthermore, the US dollar is on its back foot, so it does make quite a bit of sense that we could continue to see bullish pressure over the longer haul. With this being the case, I believe that we go looking towards 1.45 handle longer-term, perhaps even higher than that. To the downside, if we were to break down below the 1.40 handle, then the 1.37 level could be tested.

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