GBP/USD Price Forecast – British Pound Continues to Test Lower Levels

·2 min read

The British pound has gone back and forth during the course of the trading session on Monday to kick off the week on the back foot. The market did gap a little bit higher to kick off the session, but it is finding the continuation of this market move a bit difficult. All things been equal, I think there is plenty of resistance above that will continue to cause some major issues, especially near the 1.33 handle. Above there, we have a massive amount of wicks on several candlesticks, as the 1.34 level is even more resistive.

GBP/USD Video 07.12.21

To the downside, if we continue to break down, then it is likely that the market will test the 1.32 handle, which has been a short-term support region. Breaking down below there then opens up the possibility of a move to the 1.30 handle. The 1.30 handle has been my target for a while, but that does not necessarily mean that we get there overnight. I think we continue to see a lot of struggle, but it does appear that more money is flowing into the bond markets in America, as yields have suddenly started to drop again.

With that being the case, it means that we need to see more dollars, meaning that this will probably drop. The 50 day EMA currently sits at the 1.35 handle, which is a major round figure that a lot of people would be paying attention to. In general, we are in a downtrend so there is no point in trying to fight that, but I do recognize that we are struggling to get big moves, and that might be the way going forward.

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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