GBP/USD Price Forecast – British Pound Continues to Grind Higher
The British pound has gone back and forth during the trading session on Monday as we are trying to build up the necessary momentum to go looking towards the 1.42 handle. That of course is an area that should cause a certain amount of resistance, as it has multiple times, but I do think that we are trying to push to the upside and break out above that given enough time. Ultimately, this opens up the possibility of a much bigger breakout, but we do not have the momentum quite yet to make that happen. Nonetheless, I do think that if we can break above the 1.42 level, then this pair could go much higher.
GBP/USD Video 18.05.21
To the downside, the 1.40 handle continues to be crucial support, as it had been crucial resistance previously. This comes down to the US dollar selling off in general, which of course is something that is worth paying attention to. The British pound is getting a little bit of a boost due to the idea of the UK economy reopening, and of course the fact that the US dollar has been getting hit rather hard as of late. That continues to be the case, then it is likely that we could go much higher, breaking above that 1.42 level and going to go looking towards 1.45 handle.
To the downside, the 1.40 level being broken probably opens up a move down to the 50 day EMA underneath, and then possibly as low as 1.3750 which had been important more than once and should attract a lot of buying pressure.
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This article was originally posted on FX Empire
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