Here we go again with our forecast for the next weeks in the two main GBP pairs.
GBP/USD for March 2021
We forecasted falls for the GBP/USD pair in March, and we were right. Now, the price seems to be finding a support around 1.3670. However, it is also doing decreasing tops, which is a clear signal that, right now, the trend is bearish.
We still think it is not the time to make a trade in this pair. If the price gets closer to the last top around 1.3920, we could try a short position, but now we are not close enough to do that; and short positions where we are at now do not make sense because we are too close to the support.
The levels we need to look at are, on one hand, 1.3920 above, meaning that if the price breaks it, a new bullish trend could start; and on the other hand, 1.3670 which a breach would mean that the falls are going to continue.
We think that the falls are more likely than rises. The objective for a short position would be 1.3600. Thus, if the price recovers up to 1.385, it would make sense to try the short trade with the objective at 1.3600 and the stop loss at 1.3920. However, we would want another indicator confirming the trade. For example, it would be nice if we had the RSI giving an overbought signal at 1.385. Without it, the trade may be too risky.
This article was written when the GBP/USD was at 1.3744 on March 13.
EUR/GBP for April 2021
In March we talked about a short position with an objective of 0.8410 and a stop loss of 0.8736. The price went down after we suggested the trade until April 5, when it did a trough at 0.8472. Since then, it has rebounded up to 0.8690, which is the current price.
Therefore, the trade is still open; and while we had some profits for many days, currently it would be losing money. We would hold it until it reaches the stop loss, and hopefully it will come back to the falls before that.
It is worrisome that the current price is above the last top made on April 24 at 0.8647, but this last top was not very important; and in the long-term the bearish trend seems to be alive.
Our forecast is that the price will go back to falls without hitting our stop loss of 0.8736, which is the next resistance.
This article was written when the EUR/GBP was at 0.8690 on April 13.
We do not give financial advice, and this blog post is only for entertainment purposes.
For more information on the Stock Market in March contact us today.