GBP/USD Weekly Price Forecast – British Pound Reaches Towards the Crucial Resistance Barrier

The British pound has rallied a bit during the course of the trading week to see bullish pressure, but to me it looks as if we continue to see the 1.40 level as a difficult wall to break through. If we do get a daily close above there, then based upon the weekly candlesticks I would be looking for a move to the 1.42 handle. In general, the fact that we closed towards the top of the range suggest that we are going to go higher as well. The market also seems to have quite a bit of support underneath near the 1.38 handle.

GBP/USD Video 10.05.21

The market is likely to continue to form a bit of a bullish flag as we continue to go sideways, so the question is whether or not we can break out to the upside? Nonetheless, the Bank of England has suggested in the last few days that they are looking to taper off on purchases in the bond market, and as a result it is likely that we are going to continue to go to the upside. Underneath, I do think that there are plenty of buyers but if we get a sudden “shock to the system”, which could have people rushing to the dollar albeit very temporarily. With this being the case, I think will continue to look at short-term dips as buying opportunities. I have no interest in selling this pair until we break down below the 1.35 handle, something that we are not going to see anytime soon.

For a look at all of today’s economic events, check out our economic calendar.