GBP/USD Price Forecast – British Pound Continues to Grind Sideways

The British pound went back and forth during the course of the trading session on Thursday as we continue to wait for the jobs figure. Ultimately, the 1.40 level above is short-term resistance, and of course a place that will attract a lot of attention due to options expiring and the large, round, psychologically significant figure. At this point, the market is clearly supported just below, especially near the 1.3750 level where the previous resistance barrier was, and of course the 50 day EMA is now sitting at. Quite frankly, if we get closer to that level, I would be much more aggressive about buying the British pound but right now it looks like we are simply trying to figure out where to go next.

GBP/USD Video 5.03.21

To the upside, the 1.42 level is massive resistance above, so if we think we can break above that level, then the market would be free to go much higher, perhaps reaching towards 1.45 handle. After that, we could even go as high as 1.50 level. After all, that is a major level on the monthly charts, and quite a bit closer to the historic norms that we would see in this pair. Quite frankly, if we can get some type of massive amount of stimulus out there and perhaps signs that we are going to have even more, then I think they will sell the US dollar quite drastically. That being said, I have no interest in selling this pair anytime soon, so with that in mind I am looking to buy dips only.

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