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GBP/USD Weekly Price Forecast – Pound Forms a Supportive Candlestick

By:
Christopher Lewis
Published: Mar 26, 2021, 14:56 UTC

The British pound fell significantly during the course of the week, slicing through the 1.3750 level before turning around.

GBP/USD

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The British pound fell significantly during the course of the week but had a complete turnaround to show signs of support on a weekly candlestick, right at the 1.3750 level. This is an area that has been important more than once, so the fact that we ended up forming this type of candlestick is a very positive sign and it suggests that the British pound may in fact continue to be very bullish. This is interesting, because it looks like we are going back to the same situation where we have the pound strengthening against almost everything again.

GBP/USD Video 29.03.21

To the downside, the market has massive support at the 1.35 level, so I think that is probably about as far as this market could pull back. Nonetheless, it seems to me as if the market is ready to go looking towards the 1.40 level, which is an area that has been massive resistance previously. If we can break above there, then it is likely that the market could go looking towards the 1.42 level above. All things been equal, this is a very significant resistance barrier on longer-term charts, so I think at this point we will continue to struggle. However, if we can break above there then this pair could go towards the 1.45 level above.

If the market was to turn around a break down below the 1.35 handle, then it could open up a move to the 1.32 level, but that is the least likely of scenarios. If anything, I believe the Barry scenario is more or less going to be sideways above all else, which just means that shorter-term traders will continue to push the pair back and forth.

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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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