GBP/USD Price Forecast – British Pound Ready to Break Down Further
The British pound has fallen during the trading session on Wednesday to reach towards the lows again. At this point, it appears that we are going to eventually break down to the point where the downtrend continues. The US dollar has been rather strong for a while, and it looks like this will continue to be the case going forward. The British pound of course has to deal with the Bank of England being very loose for the foreseeable future, while the Federal Reserve looks to taper its bond purchase program. At this point time, the market is likely to continue to focus on that differential, so therefore more money goes into the US dollar.
GBP/USD Video 25.11.21
Rallies at this point in time will continue to find trouble, especially near the 1.35 handle, which is an area that previously had repelled the bullish move. All things being equal, the market should continue the breakdown as we have seen more than enough market structure break down and it will almost certainly continue to favor the idea of falling. Ultimately, I do think that we probably go looking towards 1.30 level, but you should keep in mind that it is Thanksgiving week, so the next day or two will be somewhat illiquid. With this, we could get sudden moves, or for that matter we may get absolutely no moves. You just never know when it comes to this type of trading environment. With that in mind, I believe that selling short-term rallies will continue to be the best way forward, just as selling a break down below the lows of the Tuesday session will be.
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