GBP/USD Price Forecast – British Pound Slams Into Support

The British pound has fallen significantly during the trading session on Wednesday to crash into the 1.35 handle. By doing so, we are testing significant support, so it is worth paying close attention to this market. Ultimately, this is a market that I think continues to see a lot of massive bullish pressure in this general vicinity, so it will be interesting to see whether or not we can hold this floor. If we can, the “double bottom” will have been confirmed, and that could send this market much higher over the longer term. This sets up a significant “floor the market” at the 1.34 handle, so as long as we can stay above there, I think that this market has a fighting chance to continue rallying.

GBP/USD Video 11.11.21

Furthermore, you need to pay close attention to the US Dollar Index, which seems to be failing yet again at the 94.50 level, so this suggests to me that the dollar is probably struggling to break out going forward. This is an indicator that I use quite a bit to tell me which way to play FX markets in general, so I pay close attention to the US Dollar Index at all times. Quite frankly, it looks as if the US dollar tried to strengthen drastically, but it seems to be failing. At this point, there is a huge fight going on between the idea of the US dollar strengthening due to a major global sell off, or a major inflationary move that continues to strengthen due to the reopening trade, which makes other currencies much more attractive.

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