GBP/USD Price Forecast – British Pound Lurches Higher to Kick Off Week

The British pound has rallied significantly during the trading session on Monday to kick off the week on the right foot, recovering a lot of the major losses, as we had seen a lot of selling pressure after the Bank of England chose to wait a while to taper. Nonetheless, this is a market that looks as if it is trying to turn around and move much higher, because quite frankly a lot of the reaction may have been overdone. Furthermore, interest rates in the United States continue to drop, so that does suggest that perhaps the US dollar might fall as well.

GBP/USD Video 09.11.21

Looking at this chart, I do think that we have further to go to the upside, but it might be a bit noisy. After all, we had just seen a major sell off, and quite frankly that more often than not will cause a bit of hesitancy. Keep an eye on the US Dollar Index because it has recently failed at a major resistance barrier, and therefore one would anticipate that the US dollar itself is going to continue to struggle.

At this point in time, it looks as if the 1.34 level is now the “floor in the market”, and therefore we need to pay close attention to that level. If we do break down below there, then it is possible that the market could break down rather significantly. At that point though, I would anticipate that will be very difficult to make happen. With this being the case, I think that we will probably continue to see short-term “buy on the dip” type of trading.

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