GBP/USD Weekly Price Forecast – British Pound Continues to Pressure the ResistanceThe British pound continues to pressure the 1.42 handle, an area that has been significant resistance for some time.
The British pound has had a very volatile week, initially dipping quite a bit but then recovered to reach towards the 1.42 level yet again. This is an area that I think continues to see a lot of selling pressure, due to the fact that it has been important more than once. Looking at the candlestick for the week, it does suggest that we are trying to build up enough pressure to break out, but if we were to break down below the bottom of the candlestick, then it would essentially make it a “hanging man.”
GBP/USD Video 07.05.21
At this juncture, I do believe that eventually we will go looking towards 1.45 handle, but it is clear that we just do not have the momentum to do so quite yet, so we are either going to grind sideways in the short term, or perhaps even pull back in order to find a bit of value. If we can break above the weekly candlestick that we are printing now, then it is possible that we have an opportunity to grind towards that 1.45 level.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
That being said, I do not think that it is going to be easy, so I expect more headaches for traders who are bullish. As far as being bearish is concerned, that is a great way to lose money although we may get a short-term pullback that might offer a little bit of profit. Regardless, biting the trend is a great way to lose money overall so I generally do not do that, especially when looking to work with the weekly charts. As far as selling is concerned, we would need to break down below the 1.37 level, something that looks very unlikely anytime soon.
For a look at all of today’s economic events, check out our economic calendar.