GBP/USD Price Forecast – British Pound Rallies Yet Again

The British pound has rallied again during the trading session on Thursday but continues to see trouble near the 1.3350 level. This is an area that has been solid resistance over the last week or so, and I think it shows just how little faith there is in the “risk on move” that could happen. At this point, the market looks likely to pull back even further, perhaps eventually going to the 1.30 level.

GBP/USD Video 03.12.21

I will say one thing, the British pound is not going out without a fight. The last time I can think of the Great Britain had been defended this heavily, was probably in the form of the RAF during the Battle of Britain. Nonetheless, it does look like the weight of the market is starting to get to the Pound, and therefore I think we have further to go, and probably much sooner than anticipated. If we get a relatively strong jobs report on Friday, it is very likely that will be the “straw that broke the camel’s back.”

All things been equal, I do not have an interest in trying to get long of this market, even though I can make a huge argument for a bit of a bounce coming. It has been rather resilient with its support, but there is no follow-through and that is the biggest problem. As long as that is going to be the case, it is very likely that we will struggle to break above this short-term barrier. In fact, I do not trust going long of this market until we break above the 1.35 handle, something that I do not expect to see in the near term.

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