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GBP/USD Weekly Price Forecast – British Pound Gives Up Massive Gains

By:
Christopher Lewis
Published: Apr 23, 2021, 15:12 UTC

The British pound has shot higher during the course of the week, only to give back and show signs of exhaustion.

GBP/USD Weekly Price Forecast – British Pound Gives Up Massive Gains

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The British pound has shot higher during the course of the trading week, slamming into the 1.40 handle. However, we have pulled back significantly from there to form a massive shooting star. The shooting star suggests that the market is not quite ready to continue going higher, but we also see a significant amount of support underneath that could come into play. I believe that the 1.3750 area are so an area that buyers could get involved, but if we break down below there then it is likely that we go to the 1.35 handle.

GBP/USD Video 26.04.21

In general, this is a market that looks as if it is trying to form some type of bullish flag, but we are still struggling in general, and it looks like we have a lot of noise between now and some type of break out to get through. Longer-term traders will probably look at some type of pullback in order to take advantage of a supportive hammer or something to that effect. To the upside, the 1.42 handle is a large, round, psychologically significant barrier that has shown itself to be difficult to get above, but if and when we can break above there, then the market goes looking towards 1.45 handle.

This is a market that I think continues to see a lot of noise involving the US dollar and of course the fact that the UK is trying to reopen has various headlines coming out that will more than likely move markets from time to time. I will be using very small positions to scale into a trade to the upside. If we break down below the 1.35 handle, then this market more than likely corrects rather severely.

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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