GBP/USD Price Forecast – British Pound Trying to Break Out

Christopher Lewis
·2 min read

The British pound has rallied a bit during the trading session on Thursday to break above the 1.37 level, but as you can see, we are struggling to bit above there. Ultimately, I do believe that this market will break out so it is more or less just going to be a question of when we can do it. Pullbacks all the way to the 1.35 level could be opportunities for longer-term traders to get involved, but you need to wait for some type of supportive action to get involved. We are obviously in an uptrend, but there is also a lot of things going on at the same time that could cause a certain amount of issues.

GBP/USD Video 22.01.21

Somewhat obvious that the US dollar continues to be sold, as we have plenty of reasons to believe that the dollar will get eviscerated due to stimulus and of course the massive amount of debt that the United States continues to pile up. I think this is the story for several months, although longer term we could see a bit of a turnaround. With that being the case, the market is likely to see a lot of noise in general, so I have course would be very cautious about jumping in with a huge amount of trading capital. Nonetheless, the trend is most certainly to the upside so the fact that we broke above the top of a shooting star from the previous session is typically a good sign, and therefore I think we continue towards 1.40 level over the next several weeks.

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This article was originally posted on FX Empire