GBP/USD Price Forecast – British Pound Continues to Look Parabolic

The British pound initially pulled back a bit during the trading session on Monday but then turned around to try to take off above the 1.40 level. Ultimately, this is a market that is getting a little bit ahead of itself, so I do like the idea of finding bits and pieces of value on pullbacks. I think at this point, the market is likely to break back below the 1.40 level again, where it will find buyers jumping into the market. I would be especially interested in this market closer to the 1.39 level, and then again at the 1.3750 level.

GBP/USD Video 23.02.21

The US dollar is being punished for stimulus, so that is part of what we are seeing in this pair, but ultimately markets cannot go straight up in the air forever. The 50 day EMA is starting to reach towards the 1.3750 level as well, so that offers yet another reason to think that it will be the “floor the market.” Ultimately, I think we are going to go looking towards the 1.42 handle, but we cannot simply go straight up in the air without at least feeling some effect of gravity. I picked the 1.42 level due to the weekly chart where we had seen a lot of resistance in that area. Overall, I think buying the dips is probably going to be the best way going forward, as we have a pretty set trend, but we also have a lot of energy that has been expended as of the last couple of months. I have no interest in shorting whatsoever.

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