GBP/USD Price Forecast – British Pound Fighting for Traction

The British pound has tried to continue selling off during the trading session on Monday but has turned around to show signs of life again. The market is likely to continue seeing a bit of a recovery, and an attempt to get above the 1.37 handle. The market breaking above the 1.37 handle offers the possibility of going towards the 1.38 handle again, but we also have the 50 day EMA and the 200 day EMA sitting right there as well, meaning that the market will have to pay attention to those psychologically important technical indicators.

GBP/USD Video 02.11.21

If we were to turn around a break down below the bottom of the candlestick for the day, then it could open up a move down to the 1.36 handle, possibly even the 1.35 handle. With this being the case, the market would probably enter more of a “risk off” type of situation, mainly due to the fact that the US dollar is considered to be a bit of a “safety currency”, but as things stand right now it is not the most likely of scenarios that I see. The 1.3850 level is a massive resistance barrier, and if we can break above there it is likely that we could see a major move to the upside, but at this point in time we have a lot of work to do before we consider that as a possibility. The attitude of markets seem to be more of a “anti-dollar” situation, and this is one of the ones that you have to pay the most attention to as it is very sensitive to that as of late.

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