Yahoo News GBP/USD Price Forecast – British Pound Trying to Build Base
The British pound initially tried to rally during the course of the trading session on Monday, but as you can see we have turned back around to show signs of weakness again. That being said, we have been bouncing around the 1.33 level, so if we can stabilize here, we may get a little bit of a bounce. That being said, we are still very much in a downtrend and recently have seen the British pound get hammered against the greenback.
GBP/USD Video 30.11.21
To the upside, I believe that the 1.35 level is still a significant barrier that is going to take quite a bit of effort to get above there, so at this point in time I do not expect to see that happen. With this being the case, the market is likely to see plenty of noisy behavior in this area, but if we break down below the lows on Friday, that could open up fresh selling, perhaps sending the British pound down to the 1.30 level over the longer term.
Either way, I think you probably have a lot of noise just waiting to happen, and therefore ultimately this is a market that you probably want to get involved in with a small position, and then build in order to trade what has been a very strong trend. Furthermore, as we continue the nonsense with lockdowns, it is very possible that the United Kingdom could join the ranks and therefore destroy its own economy yet again. It will be interesting to see how this plays out, but clearly, you need to pay attention to the downside because that is where all the momentum is.
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This article was originally posted on FX Empire
