GBP/USD Weekly Price Forecast – Pound Continues to Find Support

The British pound rallied a bit during the course of the week, breaking above the 1.3750 level. Ultimately, the 1.38 level would be an area that a lot of people should pay attention to as well, because if we can break above there then the market is likely to go looking towards the 1.40 level. The 1.40 level has been a massive resistance barrier that has pushed back against buyers multiple times, so if we were to break above there then it is likely that we could go looking towards the 1.42 handle.

GBP/USD Video 19.04.21

The 1.42 level is a significant resistance barrier, and of course is an area that if we can break above it would be a very bullish sign. Breaking above there could open up the possibility of a move to the 1.45 handle. That of course would be a very strong sign and we have been in an uptrend for a while, so it could make a certain amount of sense for that to happen. All things being equal, when you look at this chart, you can see clearly that there is a significant amount of support that extends down to the 1.35 handle. The 1.35 level being broken to the downside could see a lot of selling pressure, perhaps reaching down towards the 1.30 level.

One thing is for sure, it has been very noisy as of late, and I think that will continue to be a major issue. At this point in time, I think we would continue to see a lot of choppy sideways behavior, perhaps being better to trade a back-and-forth type of short-term market.

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