GBP/USD Price Forecast – British Pound Dips Below 1.35

The British pound has fallen again against the US dollar, as the jobs number in the United States was much stronger than anticipated. This has happened through the prism of the Bank of England choosing to halt on tapering, while the reserve the United States has just started. With that being the case, it does make a certain amount of sense that the US dollar should strengthen against the British pound. At this point, we are threatening the most recent bounce, and if we can break down below the 1.34 level, it is likely that the market should go looking to much lower levels.

GBP/USD Video 08.11.21

Rallies at this point will have to test the 1.35 level, which should be slight resistance. On the other hand, if we turn around and break above there, the reality is that we would probably recover quite significantly. All things been equal, this is a very important support level, so if we break down below there, it is likely that we go much lower. The market of course is going to pay close attention to this 1.34 level, and if we break down below there, it is likely that this market really starts to fall apart at that point.

That being said, I am going to wait until we get the weekly close in order to put money to work, because quite frankly I think this is a longer-term signal just waiting to happen. As I write this article, we are threatening that level, so the question now is whether or not we have enough momentum to make it happen? Ultimately, the market will give us our signal at the end of the week.

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