GBP/USD Price Forecast – British Pound Continues to Look Sick

·1-min read

The British pound has initially tried to rally during the course of the trading session on Thursday but gave up gains rather quickly to form a less than desirable candlestick. All things been equal, this is a market that looks as if it is going to go looking towards 1.30 level, an area that has been my target for a while now. To the upside, the 1.35 level should offer resistance, as it was the most recent area we sold from. The British pound of course is suffering at the hands of the Bank of England and its decision not to taper.

GBP/USD Video 26.11.21

On the other side of the Atlantic, the Federal Reserve is tapering and that of course will continue to give a bit of a boost for the US dollar in general. Furthermore, there are a lot of concerns around the world when it comes to growth, with the US being an exception. Interest rates in America continue to rally, so that of course has a certain effect as well, so all things coming together does suggest that we are probably going to go lower anyway. I look at rallies at this point as selling opportunities and have absolutely no interest whatsoever in trying to try to catch this market and turning around. In fact, it is not until we break above the 1.36 level that I would be convinced of a trend change in this market.

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

This article was originally posted on FX Empire


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