GBP/USD Price Forecast – British Pound Continues Break Out
The British pound has rallied significantly during the trading session again during the session on Wednesday as we continue to see the British pound take off. After all, the 1.3750 level had been major resistance, and now that we are above there, I believe that we are going to go looking towards the 1.40 level at the very least. Furthermore, I think we go even farther than that but in the short term it appears that is the target.
GBP/USD Video 11.02.21
To the downside, the 1.3750 level should continue to offer support, as it was such massive resistance. There should be a lot of “market memory” in that area, and with that in mind it is likely that we would get a second wave buyers in that general vicinity. You should also notice that the 50 day EMA is racing towards that area as well, so I do believe that it is only a matter of time before people get involved in that general vicinity, as the 50 day EMA is so heavily followed by technical traders.
The British pound is more than likely getting a bit of a boost due to the fact that the coronavirus vaccinations are more prevalent in the UK than many of the other G 10 countries. Because of this, people are anticipating that the UK economy gets back to “normal” much quicker than other ones. That being said, keep in mind that the US dollar could get a sudden burst higher if there is some type of major risk off event. Barring that, I do not see anything slowing down this drive towards the 1.40 level over the next couple of weeks.
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This article was originally posted on FX Empire
