GBP/USD Price Forecast – British Pound Pulling Back

The British pound pulled back a bit during the trading session on Monday to kick off the week, breaking below the 1.35 level rather early. That being said, the market is still very much in an uptrend, so it is difficult to imagine a scenario where we continue to sell off for the longer-term move, especially as the 50 day EMA is just below at roughly 1.3370 or so. Ultimately, I do believe that people will be looking to buy this dip, and at the first signs of support I would be willing to get involved. Ultimately, I do think that the selling of the US dollar could continue, but at the very least right now I think what you can suggest is that part of the failure of the British pound to continue going higher is simply the fact that the US dollar has been sold off drastically against almost everything.

GBP/USD Video 12.01.21

To the upside, if we can break above the 1.37 level, then the market may go looking towards 1.40 level. That being said, it is not necessarily going to be an easy move to the upside, and we will continue to see a lot of noise in general. There are a lot of various noisy problems out there at the moment, which could have the occasional “rush towards the US dollar” in the name of safety. That being said, I believe that it is only a matter of time before buyers would get involved and push yet again. I have no interest in selling anytime soon.

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