GBP/USD Weekly Price Forecast – British Pound Offers Lackluster Recovery

The British pound has rallied a bit during the course of the week but has also given back about half of the gains. Ultimately, this is a market that continues to see a lot of volatility, and we are most certainly at a very high level. However, if we break down below the 1.37 handle, it is possible that we could drop down to the 1.35 handle. To the upside, if we continue to see buyers jumping back in and try to lift the Pound, the market could go looking towards the 1.42 handle. That is an area that has obviously been very resistive more than once.

GBP/USD Video 28.05.21

Breaking above the 1.42 level would send this market much higher, perhaps making it reach towards the 1.45 level. With this, it would kick off the next leg higher. Nonetheless, I think that we will probably bounce around in general, perhaps trying to figure out some type of summer range. Because of this, I am very cautious about putting a lot of money to work at the moment, at least until we get a little bit of clarity.

After all, the previous week had a horrific looking candlestick, and while we have not necessarily fall apart, one would have to think that there is still the potential of some type of break down, so we need to see some type of impulsive candlestick to give us a little bit of a “heads up” as to where we go next. At this point, I have more or less a neutral rating on this pair over the next couple of weeks.

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