GBP/USD Price Forecast – British Pound Gives Back Gains

The British pound initially pulled back during the trading session on Friday as the 1.40 level has caused some issues. Ultimately, this is a market that continues to see a lot of volatility, but we are still very much in an uptrend. That being said, the market should see support underneath at the 50 day EMA that currently sits just above the 1.3750 level. The 1.357 level of course is an area that has been very crucial previously, and with that being the case I think what we are looking at is a market that is simply going to offer value on these dips. Quite frankly, it is not until we break down below the 1.35 level that I would be concerned about the overall uptrend.

GBP/USD Video 15.03.21

This far as buying is concerned, if we can break out above the 1.40 level, then I believe that the British pound will continue to go to the 1.42 level, which is a major resistance on the weekly chart. Ultimately, this is a market that I think continues to see a lot of volatility, but it is clear that the British pound has been difficult to sell for some time, so with that being the case I do believe that the market is one that we will still look to buy on dips, because given enough time we should see more upward pressure, especially if we can see yields calm down in the United States. Quite frankly, this is a market that I believe will continue to find reasons to go higher over the longer term.

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