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GBP/USD Weekly Price Forecast – British Pound Towards Support Level

Christopher Lewis
·2-min read

The British pound has pulled back rather significantly during the course of the week, after initially trying to rally. That being said, the market then reach down towards the 1.3750 level which was an area that had previously been resistance. We have bounced nicely from there, and the Friday candlestick is starting to look a bit supportive, and as I record this is trying to form a hammer. That being said, the market is likely to see plenty of buyers in that 1.3750 level. I think at this point in time, the market needs to either continue to go lower towards the 1.35 handle, or perhaps simply go sideways.

GBP/USD Video 08.03.21

All things being equal, I do believe that the British pound will try to get back to the 1.42 level, but it may take several weeks to get there. This is a market that we are going to continue to see a lot of noise in the market, but when you look at the longer-term charts, this is a market that has historically been higher more often than not, so I do think that what we are seeing here is a market that is trying to continue the uptrend but needs to work off some of the excess froth. The 50 week EMA is starting to reach towards the 200 day EMA, and that being said it is likely that we will see noisy behavior, but still plenty of buyers getting involved in sooner or later. It is not until we break down below the 1.35 level that I would be a seller, and even then, I would need to see a weekly close below that level.

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This article was originally posted on FX Empire

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