In today’s report, we will take a closer look at the GBP/USD currency pair.
If you listen to the currency analysts at UOB Group, the Cable has the potential to fall back to the 1.3850 level within the next few weeks. Looking at the chart, one can see the very strong rise since the Corona low at 1.1409. From this low, the GBP/USD has since risen to 1.4241 on February 24, 2021. However, from this level, the pair started to move down again to the support at 1.3913. Here the market seems to be turning around again and bullish signs are visible.
Moreover, the market is still in an uptrend channel since mid-October. Currently, the price is trading in the lower part of the trend channel.
As long as no new lows form below 1.3913 and this level is not broken sustainably, further rising prices are quite possible. If the 1.3913 area fails to hold, the 1.3850 level as predicted by the UOB Group is very likely.