GBP/USD Weekly Price Forecast – British Pound Slices Through Short-Term Resistance

The British pound has spent most of the week following, but it is worth noting that Friday was obviously a scenario where liquidity could have been an issue, especially as the Americans were away for Thanksgiving. Ultimately, this is a market that I think will bounce a bit, but we have seen a lot of negativity when it comes to the pound as of late. Perhaps a more likely of scenarios would be that we are simply seen a lot of US dollar strength. That being said, the dollar strength is a bit overdone, and you can deftly tell that when it comes to some currencies like the Euro.

GBP/USD Video 29.11.21

I think at this point in time we are likely to see a lot of noisy behavior, but the real fight will begin at the 1.35 level where I would anticipate seeing a lot of downward pressure. If we can break above there, then the British pound has a real chance of recovering. On the other hand, if we break down below the bottom of this candlestick then we go looking towards 1.30 level, which is where I am leaning towards, especially as the US dollar has been so strong recently. Nonetheless, markets do not go in one direction forever so it certainly makes quite a bit of sense that we would see a bit of a bounce. I think that will be the case over the next couple of weeks, so therefore I would be looking to fade anything that show signs of exhaustion. However, you have to keep an open mind on the next move.

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