GBP/USD Price Forecast – British Pound Continues to Drift Lower

The British pound has initially tried to rally during the trading session on Tuesday but gave back gains near the 1.33 level to show signs of weakness yet again. That being said, the 1.32 level underneath offers plenty of support, so it will be interesting to see whether or not we can break down below there. If we can break down below the 1.32 handle, then it is likely that we go looking towards 1.30 level. The 1.30 level of course is a large, round, psychologically significant figure, and one worth noting based upon monthly charts.

GBP/USD Video 08.12.21

In the short term, it is very likely that this market will continue to see a lot of selling pressure on short-term rallies, so therefore that is how I am trading the British pound as of late. In fact, when you look at the British pound against multiple currencies, it has done the same thing across-the-board. It simply seems as if the Sterling cannot hang on to gains, and that something worth paying attention to. In other words, I have no interest in buying this market, at least not anytime soon.

Even if we do break higher, I believe that the 1.3350 level continues to be a massive resistance barrier, followed by the 1.35 handle. The 50 day EMA just broke down below the 1.35 handle, which is a large, round, psychologically significant figure as well. In time, the market certainly looks bearish and that is how I am going to continue to play it.

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