GBP/USD Price Forecast – British Pound Continues to Fall Apart

The British pound has gotten hammered again during the course of the trading session on Tuesday as we continue to see the US dollar pick up strength against almost everything. At this point, it is likely that we will see negative pressure, and I think that short-term pressure continues to pick up, and at this point in time the market is likely to continue to see bearish pressure on anything that is not a US dollar, due to the fact that the bond market continues to attract a significant amount of money, and as a result more of those dollars are needed.

GBP/USD Video 21.07.21

There is a significant “risk off” feel to the markets as of late, due to continued concerns about the coronavirus issues and of course the Delta variant grabbing headlines. With this, a lot of money has been flowing into safe assets, which of course the British pound is not. Furthermore, even though the United Kingdom has reopened, the reality is that there are a lot of concerns when it comes to the reopening trade overall, so therefore it attracts a lot of safe haven flows.

The British pound is more than likely going to go looking towards 1.35 handle underneath, which has been a significant support level. We are well below the 200 day EMA now, which of course is yet another reason to think that this market might become bearish. I believe that this market is probably one that you can sell on short-term signs of exhaustion.

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