November 12, 2021

Accurate Forecast! GBP/USD Continues to Remain Downtrend

 Looking at the GBP/USD price movement chart, the price is seen to continue to translate the downtrend to the most recent low since December 2020 at around 1.33600.

A clearer downtrend pattern can be seen taking place since the price failed to pass the resistance zone at 1.38000-1.38300 and continues to maintain the fall approaching 500 pips so far.

The price movement in trading in the Asian session yesterday (Thursday) seemed to move slowly before reacting downwards at the beginning of the European session to break the 1.34000 level.

Deck because the Pound currency which is currently still shrouded in frustration by the dovish statements of the Bank of England (BOE) as well as Brexit pressure continues to have adverse implications for the value of the Pound.

As a result, the USD continues to take the opportunity to strengthen as there is still no sentiment that can influence the king of the currency from continuing to stand at the peak of dominance.

The recent issuance of high US inflation rates may also be a factor in strengthening expectations for the Federal Reserve (Fed) to tighten policy.

If the price movement on the GBP/USD chart continues to gain pressure to stay down, the latest support zone at 1.33000 is expected to be the investor focus zone that will be hit.

A fall in the price to reach the support zone is seen to produce a plunge of around 50 pips and at the same time will continue to maintain the downtrend pattern.

However, if the price movement is able to gain momentum to record a rise, the SBR zone (support become resistance) 1.34000 will likely be reached before continuing to climb.

A stronger spike will be observed for the price to move to the next SBR zone at 1.35000 as well as the resistance trendline which is the investor's valuation zone to anticipate the next movement.