GBP/USD Price Forecast – British Pound Forming Possible Double Bottom

The British pound has rallied quite nicely after initially dipping slightly on Monday, showing signs of continuation to the upside. That being said, it is worth noting that the pair has been forming a potential double bottom, so the fact that we rallied is a good sign. Having said that, there is also a significant amount of support underneath that extends all the way down to the 1.35 handle, so it is very likely that we will eventually see buyers come in and pick this pair up. That being said, I would expect a lot of volatility, but we have been in a long-term uptrend for quite some time and therefore it is difficult to imagine how this pair would suddenly change trends without some type of major disruption.

GBP/USD Video 13.04.21

The US interest rates do continue to spike, and that has been a bit of a problem for the Forex market, but at the end of the day the British pound has been a bit of an outlier, and I do believe that will continue to be the case. That being said, I do think that we are eventually going to see a bigger move, and as things stand right now it seems more likely that we will go higher rather than lower. However, if we were to break down below the 1.35 handle, it would not only break a major psychologically important level, but it would also break the 200 day EMA, something that would certainly be worth paying attention to. With this in mind, I like the idea of buying dips and most certainly would like the idea of buying a breakout the 50 day EMA. The next major target would be the 1.40 level.

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