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GBP/USD Price Forecast – British Pound Trying to Reach Towards Highs Again

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·2 min read
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The British pound has rallied a bit during the course of the trading session on Friday but as you can see has given back a bit of the gains as this market continues to be very noisy. All things being equal, this is a market that I think will go looking towards the 1.42 handle, an area that has been significant resistance previously. With that being the case, I think that the market is going to be attracted to this level, and that the recent pullback might simply be an opportunity to build up the necessary momentum to finally break above there. If and when we do, then the market will continue to see quite a bit of momentum jumping in to continue the overall trend.

GBP/USD Video 17.05.21

If we were to break down below the candlestick from Thursday, then we may have to pull back towards the 1.40 handle again, where the 50 day EMA is rapidly approaching. That was an area that was significant resistance previously, so I do think that it makes quite a bit of sense that we would see people jumping in to take advantage of this obvious area. Breaking above the 1.42 handle allows the market to go looking towards 1.45 level, an area that on the longer-term charts continues to be important, and of course will attract a lot of attention. If we can break above there, then the market is likely to go looking towards the 1.50 handle, which I think we could reach by the end of the year if the US dollar continues to struggle.

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This article was originally posted on FX Empire

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