The British pound has initially pulled back during the trading session on Thursday as we continue to see a lot of buying pressure underneath. Ultimately, the 50 day EMA comes into the picture as well, showing signs of stability and support. The market has been picking away at the 1.42 level above, an area that is significant resistance. If we can clear that area and the highs of last week, then it is very likely that we could continue to go much higher, perhaps reaching towards the 1.45 handle.
GBP/USD Video 11.06.21
On the other hand, if we break down below the lows of the trading session on Thursday then it is possible that we could go as low as 1.40 handle, which is an area that of course will attract a lot of attention from a psychological standpoint in that area where we have seen a lot of resistance in the past, so it all comes together with “market memory.” We are in an uptrend, and that is the most important thing to pay attention to.
Because of this, I think that there are plenty of people looking to get involved every time it dips based upon value and of course the fact that the trend has been so reliable. Quite frankly, I think we are to simply trying to find some type of a catalyst to take off to the upside. We have not really have it yet, but it is worth noting that we have not bothered to sell off either. All things been equal, this is a scenario that will probably put people to sleep for the most part, but at the end of the day is still bullish.
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