GBP/USD Price Forecast – British Pound Trying to Recover

The British pound has initially fallen during the trading session on Tuesday but seems to be finding buyers at lower levels. Has long as that is the case, I think that the British pound does have a significant chance of recovering towards 1.37 handle. It is at that point that we determine whether or not we can continue with a bullish trend that we have seen as of late. A break above the 1.37 level almost certainly will have the market looking for 1.3850 above.

GBP/USD Video 03.11.21

On the other hand, if we were to break down below the 1.36 handle, that could open up a move down to the 1.35 handle. Anything above the 1.35 handle would have me concerned about the British pound and would more than likely see this pair break down quite significantly. Keep in mind that the Bank of England is looking to raise rates soon, so that of course has a certain amount of influence on this market anyway. With that in mind, I think what we are seeing is a scenario where value hunters coming back in, so the next couple of days should be important.

Looking at the candlestick from the Monday session, the fact that we are trying to form a hammer on Tuesday should not be a huge surprise, as we continue to see the fight developed. The US dollar has been struggling a lot as of late, and of course the Federal Reserve is starting a two-day meeting during the day on Tuesday, so we may have a little bit of hesitation in both directions.

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