GBP/USD Weekly Price Forecast – British Pound Has Noisy Week

The British pound has gone back and forth during the course of the week, as we continue to see a lot of noise out there when it comes to the interest rates in America. That being the case, the market is going to continue to look at the US dollar very closely, which is of course weighing upon the British pound. Furthermore, when you look at the weekly chart, we had a massive shooting star and the question now is whether or not that shooting star was the top? I am not ready to call that yet, but it certainly is starting to look a little bit ominous.

GBP/USD Video 22.03.21

I think that if the market breaks down below the 1.3750 level, then it is very likely that we will go looking towards the 1.35 handle again. That being said, this is going to be a very difficult trade if you choose to short, because the British pound has been so bullish out of late. However, if interest rates in America on the 10 year note break above 1.75%, that could be the catalyst to really get things moving to the downside here. Alternately, if interest rates in the 10 year note in America start to break down, then that should give more momentum to other currencies around the world, the British pound included. As things stand right now, everybody is paying attention to the bond market and that is by far the biggest driver of markets. You can see clearly on the chart where I have my lines drawn, so you can infer the various levels I am looking at.

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