GBP/USD Price Forecast – British Pound Trying to Stabilize

The British pound initially fell during the course of the trading session on Monday to kick things off, but then turned around to show signs of life. The hammer shaped candlestick that we are getting at suggest that we could get a little bit of a bounce, but quite frankly I believe that the 1.35 level will continue to offer a lot of resistance. The 1.35 level is of course a large, round, psychologically significant figure, and an area that has been important already. Furthermore, we have resistance extending all the way to the 1.36 level, and therein lies the biggest barrier that we have to deal with.

GBP/USD Video 23.11.21

If we can break above the 1.36 level, then it is likely that we go much higher. At that point, I would have to really begin to think things in the other direction, but at this point it seems to be very unlikely. If we were to break above the level, then it is likely that we will continue to see a huge move to the upside. Until then, I am looking for some type of exhaustive candle that I would be able to short. Ultimately, I believe that this market is more likely than not to continue going lower. If we break down below the 1.34 level again, I think that will continue to work against this pair and perhaps even open up a move down to the 1.30 handle. All things been equal, I think the only thing you can probably count on is a lot of noisy behavior, which signals that something bigger is coming.

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