GBP/USD Price Forecast – British Pound Continues to Fight

The British pound has continued to fight back against the strength of the greenback during the trading session on Wednesday, as we have broken towards the 1.35 handle. We have not been able to break above there though, so that is something worth paying attention to. The market will continue to see a lot of noisy behavior, but I still believe that the 1.35 level begins a major amount of resistance that extends to the 1.36 handle, and therefore I think it is only a matter of time before we start shorting again. We may need a little bit of a recovery in the short term though, so I have been very patient about trading this market.

GBP/USD Video 18.11.21

The British pound has been a fighter as of late, but as you can see, we have continued to see downward pressure. This does make a certain amount of sense considering that the Bank of England is still loose with its monetary policy while the Federal Reserve is trying to tighten. Granted, the tightening comes in the form of bond purchases being pulled back a bit, but it is a move in the right direction. Because of this, it is probably only a matter of time before we see the divergence really start to take over.

The market will continue to be a noisy situation in order to clear up any discussions going forward. The markets will continue to favor downward pressure more than anything else, so at this point it is a matter of waiting for selling opportunities over the next several sessions. The market will continue to look at the 1.36 level as a ceiling and therefore it is not until we clear that area that I will be a buyer.

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