GBP/USD Price Forecast – British Pound Falls to End the Week

The British pound continues to be soft in general, as the 1.35 level has offered resistance again. As the world goes more “risk off” due to the European Union perhaps locking itself back down, other currencies such as the British pound have taken it on the chin as well, but it is also worth noting that we have turned around to show signs of stability, so therefore it is possible that we could see a bit of a retest. At this point, I am paying close attention to the 1.35 handle, as it is an area that has a certain amount of psychology attached to it.

GBP/USD Video 22.11.21

If we were to break above all of that, then it is likely that we could go looking towards the 1.36 handle, which is an area that I think will define the trend. If we were to break above there, then it may kick off a recovery in the British pound, but I also believe that there are plenty of sellers above just waiting to take advantage of any opportunity. The US dollar has broken out rather significantly in the recent past, and at this point in time I think we will continue to see a lot of downward pressure. If we can get back below the 1.34 handle, then it is likely we go looking towards the 1.30 level underneath. One thing I think you can probably count on is a lot of choppy and volatile trading, but that does not necessarily mean that it is going to be easy to get to our endpoint.

For a look at all of today’s economic events, check out our economic calendar.