GBP/USD Price Forecast – British Pound Trying to Recover

The British pound has rallied a bit during the trading session on Monday to show signs of life. That being said, we have quite a bit of resistance between here and the 1.35 handle, so I do think that it is only a matter of time before the sellers come back in and push things around. With this being the case, I do believe that it is probably only a matter of time before we see sellers coming back into this market, as the US dollar continues to enjoy strength against most currencies, not just the British pound. The 1.35 level being broken would be the first “shot across the bow”, but not reason enough to get long as far as I can see. The 1.36 level being broken to the upside does change the overall attitude.

GBP/USD Video 16.11.21

To the downside, it is very possible that if we break back below the 1.34 handle, that the pound could go looking towards 1.30 level over the longer term. If that is the case, you will probably see the US dollar strengthening against almost everything. At this point, there does seem to be the consensus and it is worth noting that the US Dollar Index is above the crucial 94.50 level, so there is clearly a lot of upward pressure on the greenback overall. I do expect a lot of noise, but at the end of the day I do also believe that the British pound is probably going to be one of the laggards when it comes to the rest the world against the greenback, especially as the Bank of England has chosen not to taper recently.

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