GBP/USD Price Forecast – British Pound Continues to Slump Against Greenback
The British pound has broken down a bit during the trading session on Wednesday to slice through the 1.32 handle. That being said, the market has bounced just a bit, but at the end of the day we are still very much in a downtrend. That being said, market continues to fade any type of recovery, so I do think that it is probably only a matter of time before we see some type of significant break down, so therefore am looking for some type of bounce that shows signs of exhaustion.
GBP/USD Video 09.12.21
Ultimately, we could simply break down below the bottom of the candlestick, but right now and no matter what happens next, the reality is that all scenarios that I have right now are pointing lower. In fact, it is not until we break above the 1.33 level that I would even consider being long of this market. To the downside, makes quite a bit of sense that we could go looking towards 1.30 handle, which is a large, round, psychologically significant figure, and of course has shown a significant amount of importance in the past.
With that being said, I am hoping that we get some type of bounce that I can fade. That may not happen and therefore I would be willing to short if we break down but looking for some type of value in the US dollar could be a much better opportunity in my opinion. Keep in mind that the Bank of England remains very loose with its monetary policy, while the Federal Reserve is looking to taper, which should continue to weigh upon this market.
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