GBP/USD Weekly Price Forecast – The British Pound Continues Consolidating

The British pound has gone back and forth during the course of the week, as we continue to see a lot of noise in this marketplace. At this point in time, I think it is probably only a matter of time before we see a recovery, but if we were to break down below the 1.3065 level, then we could see a little bit more of a correction. Nonetheless, the 1.35 handle underneath has been important, and therefore I think you need to pay close attention to the fact that it is essentially the “floor the market. It is interesting that the pair seems to be sluggish, but I think that is more or less going to be a reflection on how the investing and trading world is at the moment in general.

GBP/USD Video 01.11.21

If we were to break above the highs of the last couple of weeks, that would obviously be very bullish for the British pound, and perhaps send the markets skyrocketing. The market looking towards the 1.40 handle over the longer term is what I see, but if we see some type of sudden shakeup, it is very possible that we could see some type of meltdown. That is not my base case scenario, but it is obviously something that you need to keep in the back of your head. Ultimately, this is a market that I think will continue to be very choppy, but still could have some distance to go. Ultimately, I think the next week or two will be crucial in determining where the Forex markets go overall, so this pair of course will not be any different.

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