The British pound has stalled again at the 1.42 handle, which is an area that seems to be massive resistance. Because of this, one has to wonder whether or not a pullback is coming, but at the end of the day the pair has been rather resilient, and that does suggest to me that eventually we probably chip away at the resistance enough to let this market go higher. If and when that happens, then I believe that the British pound will find itself at the 1.45 handle rather quickly.
GBP/USD Video 14.05.21
To the downside, I believe that the overall attitude of the market is going to continue to favor plenty of support near the 1.40 handle, which of course was rather crucial resistance previously. “Market memory” could come into play there, and that is essentially what I anticipate. With that being the case, I would be interested in buying on the dip down to the 1.40 handle, as it would be a significant area that people have paid close attention to previously. The market continues to see a lot of upward pressure overall, so I do not necessarily have any interest in shorting the British pound, at least not anywhere near where we are right now.
It is very likely that we will remain in a somewhat range bound type of market, as we have seen the Forex markets in general cool off as of late, with a real struggle when it comes to the idea of picking away at these major carriers that we see in multiple currency pairs right now, with that being the case, I think we are probably looking at more sideways action than anything else.
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