GBP/USD Weekly Price Forecast – The British Pound Gives Up Early Gains
The British pound has rallied a bit during the course of the week but gave back a lot of the gains to form a bit of a shooting star. The British pound is acting very much like the Australian dollar, as they both have a very obvious resistance barrier that traders simply cannot get past. The 1.40 level in this market is acting very much like the 0.78 level in the Aussie. Both of those offer a gateway to higher pricing, but at this point in time it looks like we are trying to break above there, and it is also worth noting that we are in an uptrend. The candlestick itself is very negative, just as the previous weekly candlestick was. Having said that, the trend has shown itself to be resilient just below the 1.3750 level, so I think it is very difficult to short this market.
GBP/USD Video 03.05.21
Even if we do break down below that level, the 1.35 handle is very likely to see support as well, especially now that the 50 week EMA is starting to reach towards that region. Nonetheless, this is probably about the US dollar more than the British pound, and if you squint, you can even make out a little bit of a bullish flag trying to be formed. I suspect that we have a short-term pullback looking to pick up more momentum before we take off to the upside, but if we were to break down below the 1.35 handle, then I would be a seller. That is not going to happen this week, so I am still inclined to look to the upside.
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This article was originally posted on FX Empire
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GBP/USD Weekly Price Forecast – The British Pound Gives Up Early Gains
