GBP/USD Price Forecast – British Pound Continues to Show Signs of Weakness

The British pound has fallen a bit during the course of the trading session on Tuesday as it looks like the market is going to threaten the 1.38 level again. This is an area where we had seen a bit of a bounce recently, but the fact that we have rolled right back over to reach towards that area, then it would make quite a bit of sense that perhaps we could break down through it. The 1.37 level is an area that a lot of people are going to have to pay close attention to, as it not only was supportive in the past, but it is also attracting the 200 day EMA.

GBP/USD Video 30.06.21

If we were to break down below there, that could open up massive selling in this pair, perhaps a run back towards the US dollar in general. When you look at the chart, you can see that the 1.35 level is significant, but breaking down below that level would then open up a massive selloff. When you look at the longer-term charts, we are most certainly close to a major barrier in the form of the 1.42 level, which is now looking more and more important. With this being the case, we should pay close attention to this market, because we could see a huge turnaround in general, offering the possibility of a much bigger move. After all, the British pound had been overdone to the upside for a while, so now the question is whether or not we can find some type of supportive action underneath?

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