GBP/USD Price Forecast – British Pound Continues to Find Buyers on Dips

The British pound has pulled back a bit during the course of the trading session on Friday but continues to find plenty of support underneath the 1.32 handle. The 1.32 handle is a significant support level that has been tested multiple times. All things being equal, this is a market that I think we could eventually bounce a bit, because quite frankly we have been grinding lower for a while and perhaps it is time to get a bit of a relief rally. Whether or not this is a complete change in attitude is a completely different question, so because of this I think the market probably continues to see a bit of noisy behavior in this general vicinity, but any rally at this point in time will more than likely end up being a nice selling opportunity down the road.

GBP/USD Video 13.12.21

If we were to turn around a break down below the 1.32 handle, then we could go looking towards the 1.30 handle, but that does not seem to be the most likely of scenarios. After all, this is a market that I think continues to see a lot of noisy behavior, but also looks at the idea of the Federal Reserve tapering much quicker than the Bank of England been able to as a major driver. To the upside, I suspect that somewhere around the 1.34 handle we would run into serious selling opportunities on signs of exhaustion. The 50 day EMA is starting to race towards that level as well, and therefore I think a lot of technical traders will be paying close attention to that as a result.

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