GBP/USD Price Forecast – Pound Continues to Melt

The British pound has fallen again during the course of the trading session on Wednesday to show signs of weakness yet again. Now that we are below the 35 handle, the market is likely to continue going much lower, and therefore I believe that we are going to see a move down to the 1.3250 handle, perhaps even followed by a move down to the 1.30 level. Furthermore, the impulsive candlestick during the trading session on Tuesday was the first sign that something was up, because candlesticks like that very rarely happen in a vacuum.

GBP/USD Video 30.09.21

The fact that we have now broken down below the 1.35 handle probably triggers quite a bit more in the way of selling, and even though I would anticipate some type of bounce, I will be selling into that bounce as the trend is almost certainly broken at this point. Furthermore, we also have to pay attention to the overall attitude of the US dollar, which of course has been very strong as of late. As we continue to see those rates in the United States rise, it does make a certain amount of sense that money will be attracted to the US as it is treated more favorably in that country.

With this being the case, I think it is only a matter of time before this market breaks down rather significantly. At this point, I have no interest whatsoever in trying to buy this pair, I think it has much further to go to the downside.

For a look at all of today’s economic events, check out our economic calendar.