GBP/USD Price Forecast – British Pound Still Looks Threatened

The British pound breaking below the 1.34 level during the previous couple of sessions has been a big deal, and now we are simply consolidating just below that level to try and figure out whether or not it is going to offer resistance. As things stand right now, it does look like that will be the case. The market should continue to see quite a bit of resistance all the way to the 1.36 level, so it is not until we break above there that I would seriously consider buying the British pound.

GBP/USD Video 15.11.21

This all began with the Bank of England choosing not to taper, but also with accelerated to the downside with the GDP numbers coming out of the United Kingdom being much lower than anticipated. That being said, the market is punishing the British pound for the idea of the economy struggling, and of course the Bank of England not been able to taper or tighten monetary policy anytime soon. As long as that is going to be the case, then it is very likely that we will see the markets favor the US dollar. Furthermore, interest rates in America have been rising in the bond market anyway, so it continues to favor the greenback against some of these more stagnant currencies.

Now that we are well below the 1.34 handle, it looks as if we could eventually try to go down to the 1.30 handle, but that obviously could take some time to get there. At this point, I am more than willing to sell rallies on signs of exhaustion, as the trend is starting to dictate.

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