GBP/USD Weekly Price Forecast – British Pound Runs Into Brick Wall

The British pound went back and forth during the course of the week to show signs of hesitation again, as the 1.42 level has offered resistance again. At this point, the market looks as if it is truly struggling with this barrier, but if we break above the 1.4230 level, then it is very likely that we will shoot straight up in the air. At this point time, the market looks as if it is going to put up a significant struggle, and that in and of itself tells me that there will be buyers underneath. However, we could very well go down to the 1.40 handle where there would be previous resistance that should now attract a lot of attention.

GBP/USD Video 31.05.21

The 1.40 level is an area where we had broken out of, so I would anticipate that there should be a significant amount of market memory in that general situation. If we break down below there, then the 1.37 level would be the next target, where on the daily chart we had formed a little bit of a “double bottom. Ultimately, this is a market that I think will continue to see a lot of noisy behavior in the short term, simply because we had shot straight up in the air. That being said, we are most certainly at a very important inflection point on the chart, so do not be surprised if it is more of a struggle than we have seen of the last month or so. Nonetheless, the trend is still very much to the upside despite the fact that the last couple of weeks have been tough.

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