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GBP/USD Price Forecast – British Pound Pierces 1.35 Level

By:
Christopher Lewis
Published: Nov 18, 2021, 15:13 UTC

The British pound has pierced the 1.35 level, an area that has been significant in the past, and now looks to be rather resistive.

GBP/USD Price Forecast – British Pound Pierces 1.35 Level

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The British pound has pierced the 1.35 level during the trading session on Thursday but pulled back to show signs of resistance there again. Ultimately, the 1.35 level offering a bit of resistance should not be a huge surprise considering the fact that the market has been in a downtrend for a while. With that being the case, I do prefer the selling of the British pound as the Bank of England continues to be very dovish while the Federal Reserve is looking to taper. In fact, once we break down below the 1.34 level, I suspect that we go looking towards the 1.30 handle if this trend can continue.

GBP/USD Video 19.11.21

This is not to say that the British pound is simply going to roll over, just that the trend continues to point to the downside. As the economy in the United States continues to boom, we have a lot of issues and other places around the world, including the United Kingdom. That being said, if we can break above the 1.36 level, I have to look beyond that and start buying. Until that happens it seems very unlikely that I will look at any short-term opportunities as ones that I would be a buyer of. The US Dollar Index has broken out, but it also got a little overextended, meaning that we could see a little bit of noisy behavior and a lot of the major pairs, including this one. Nonetheless, the largest candles that we have seen recently have all been negative, so that in and of itself tells you quite a bit about the attitude of the market overall.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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