GBP/USD Price Forecast – British Pound Gets Absolutely Clobbered

The British pound has broken down significantly during the course of the trading session on Tuesday, as we continue to see a lot of negativity. At this point, the market is breaking down below the bottom of the descending triangle, and it opens up an attack on the 1.35 handle. Breaking down below that level then opens up even further selling pressure, opening up a move down to the 1.3250 level, and then down to the 1.30 handle.

GBP/USD Video 29.09.21

The 200 day EMA above is offering a massive resistance barrier, right along with the 1.37 handle. Rallies at this point in time should continue to see selling pressure, and the first signs of exhaustion that I see I will be shorting again. All things been equal, this is a market that I think continues to see a lot of negativity regardless, and we are getting close to forming a bit of a “death cross”, when the 50 day EMA starts to reach towards the 200 day EMA and then eventually break down below it.

As far as buying is concerned, it is almost impossible until we get above the 1.3750 handle, which has been a massive resistance barrier as of late, so I do not think that I will be buying this pair anytime soon, and it now looks as if the US dollar continues to see quite a bit of strength longer-term if we continue to have a lot of concerns out there about global trade and the like. Furthermore, the United Kingdom is facing massive energy shortages, which of course will do nothing to help the overall economy as well.

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