GBP/USD Price Forecast – British Pound Breaks Higher
The British pound has rallied significantly during the course of the trading session on Monday to break above the 1.39 handle, and even take out the 1.3950 level. At this point time, it looks like the market is ready to go much higher, perhaps trying to take out the 1.40 level. I do not think that we just simply slice through it, but it is obvious to me that we have seen a huge shift in attitude, so that of course is something worth paying attention to. The 50 day EMA is flat, but it looks very much like it is going to start tilting higher, and if we get another green candlestick, it almost certainly will have to.
GBP/USD Video 20.04.21
The 1.40 level of course is going to be difficult to break above but once we do it opens up the possibility of the British pound reaching towards the 1.42 handle. 1.42 handle has been massive resistance as of late so it certainly makes quite a bit of sense that we will see a bit of a fight in that general vicinity. At this point time, the market is going to be testing a major barrier and getting above there could open up another 300 points. To the downside, the 1.3750 level is significant support, and it has now proven itself to be important and reliable. It appears that we are ready to continue the overall uptrend, as this has been a very explosive move during the day on Monday. All things being equal, I look at short-term pullbacks as potential buying opportunities and have no interest in shorting this market anytime soon.
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This article was originally posted on FX Empire
