GBP/USD Price Forecast – British Pound Has Big Move

The British pound has rallied significantly during the course of the trading session on Tuesday to go looking towards the 1.3850 area, an area that has been resistance in the past. Because of this, it is not a huge surprise to see that we have given back some of the gains, but one thing that you cannot ignore is that the British pound has built up quite a bit of momentum to go higher, and I think it is very likely that we will continue to see the British pound fight. The US dollar losing a bit of strength seems to be the case across-the-board in the Forex world right now, so of course the British pound gets a bit of a hand.

GBP/USD Video 20.10.21

Furthermore, the Bank of England is very likely to raise interest rates sometime between now and the end of the year, and that is probably something that you need to pay close attention to as well, so all things being equal it is very likely that we continue to see the British pound outperform some of the other currencies against the greenback. With that in mind, pay close attention to what is going on around the Forex world, and then pivoted back to this chart as it could be one of the better performers.

As far as a pullback is concerned, I believe that the market is probably going to go towards the 1.37 level where I would anticipate seeing a certain amount of support. Breaking down below that level could kick off a little bit more of a correction, but it is worth noting that the last couple of weeks have been very strong for Sterling.

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