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GBP/USD Price Forecast – British Pound Finding Support

Christopher Lewis
·1 min read

The British pound initially pulled back during the trading session on Tuesday but found buyers underneath the 1.39 level to turn things around and form a bit of a hammer early in the day. That being said, the British pound has been in an uptrend for quite some time and the inverted hammer from the previous session suggests that we may go a little sideways in the meantime in order to build up enough pressure to continue going higher. I do not believe that the market can simply go straight up in the air, but at this point in time the 1.42 level above is a major barrier that people need to get above.

GBP/USD Video 3.03.21

At this point in time, the market looks as if it is trying to break out above there, but in general I think we need to work off some of the excess froth that we had seen in the British pound previously, so we could drop all the way back down to the 1.3750 level, an area that was previous resistance and now is starting to attract the attention of the 50 day EMA. At this point, I would love to see this market pullback to the 50 day EMA but may have to simply make do with the market going sideways to work off some of the excess. At this point in time, I have no interest in shorting this market anytime soon as it continues to see buyers jumping back in.

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This article was originally posted on FX Empire

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