GBP/USD Price Forecast – British Pound Breaks Through Support

The British pound has broken down during the course of the trading session on Thursday as the 1.37 level has shown itself to be violated. This is an area that previously had been supportive, and as a result it looks like we are going to continue to go much lower. The recent lows at the 1.36 level will more than likely be targeted, and then after that the 1.35 handle will eventually be targeted after that. Ultimately, this is a market that it is probably moving based more upon the US dollar than anything else, as we have seen so much in the way of US dollar strength recently.

GBP/USD Video 20.08.21

If we were to break down below the 1.35 handle, the British pound is likely to fall apart at that point, perhaps dropping another 500 points or so. That being said, we could turn around and try to take out the top of the candlestick from the Wednesday session which would be a bullish sign, perhaps sending this market towards the 50 day EMA. The 50 day EMA of course is an indicator that will come into the picture as well, as the indicator gets a lot of attention.

If we can break above there, then obviously would change a lot of things but right now it certainly looks as if the US dollar is having its day and may continue to punish other currency such as the British pound. We have seen this cross the board in the Forex world, so at this point it is likely that we continue to see downward pressure and selling of short-term rallies. As things stand right now, buying is very difficult to do.

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