GBP/USD Price Forecast – British Pound Continues to Slump

The British pound initially tried to rally on Thursday but found plenty of resistance to continue going lower. That being said, the market is still driving more or less on US dollar strength than anything else. The British pound has been relatively resilient until the last couple of weeks, but still is one of the better performing currencies overall When it comes to holding its own against the greenback.

GBP/USD Video 26.03.21

The 50 day EMA is starting to tilt lower though, and I think at this point it is possible that the market may go looking towards the 1.35 handle. The 1.35 level has been important in the past, and of course is a large, round, psychologically significant figure so I think it is only a matter of time before we would see some buying in that general vicinity. Furthermore, the 200 day EMA is starting to reach towards that area so it makes sense that we would see buyers there as well.

On the other hand, if we were to get a daily close above the 1.3750 level, I would anticipate that the British pound would continue its uptrend that it had been in, looking to get towards the 1.40 level above that has been important more than once over the last couple of weeks. Breaking that carrier allows the British pound to go looking towards the highs of the 1.42 handle. That is an area that I think is going to take a lot of effort to get above, but if we do it is likely that the British pound goes looking towards the 1.45 handle. In the short term though, I think we have further weakness ahead.

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