GBP/USD Price Forecast – Gives Up Early Gains Against Greenback

The British pound has rallied initially during the trading session on Tuesday but gave back the gains after the retail sales numbers in America came out better than anticipated. Because of this, it looks as if the market is still going to continue the overall downward pressure, but it is worth noting that the British pound is at least trying to put up a fight, unlike its neighbor the Euro. All things being equal, this is a market that I think has a major resistance barrier above near the 1.35 handle, and therefore you need to pay close attention to that area.

GBP/USD Video 17.11.21

To the downside, if we break back down below the 1.34 level on a daily close, then it is likely that we go looking towards 1.30 area, which is my base case scenario at the moment. The Bank of England continues to be very loose with its monetary policy, so at this point in time it makes quite a bit of sense that we would see more of a continued downtrend than anything else. All things been equal, I think that the 1.35 level will be an area that we could see a lot of selling pressure, and it will be interesting to see if we can even get to that area. The 50 day EMA is starting to slope much lower, and I think that the market will continue to see a line of downward pressure every time we get anywhere near that level, which quite frankly at this point I do not think that happens anytime soon.

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