GBP/USD Weekly Price Forecast – British Pound Continues to Sit at Support

The British pound has fallen a bit during the course of the week to reach down towards the 1.38 handle. The 1.38 handle begins support down to the 1.37 level, which is an area that is rather crucial. If we break down below there, then it is likely that the market is going to go looking towards 1.35 handle. Breaking below the 1.35 handle then opens up a major move to the downside, perhaps down to the 1.32 level, followed by the 1.30 level.

GBP/USD Video 19.07.21

Keep in mind that the British pound is well supported, and is historically cheap, but it is worth noting that the US dollar has shown itself to be resilient against multiple currencies and is threatening a major breakout in the US Dollar Index. That being said, the way that the British pound has been behaving, I anticipate that this pair will be “less bad” than many other majors. With that in mind, it is more likely that I will be a seller of other US did not been a currencies instead of this one.

That is not to say that I will not sell this, just that it is one of my least favorite short ideas. If we break above the 1.40 level, then it is likely that we will attempt to break the 1.42 level, an area that has been crucial multiple times over the last several decades. It is not a huge surprise that we have pulled back from that level, but now the question is whether or not we continue to see the US dollar get hit longer-term, or if perhaps the US dollar suddenly finds strength again?

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