InstaForex

November 24, 2021

GBP/USD Continues To Slip To Recent Lows

 It seems that looking at the GBP/USD price movement chart saw the decline continue until once again creating the most recent low level since December 2020 around 1.33420.


The price pattern also continued to produce a fall of almost 500 pips from the high of 1.38300 which was last reached at the end of October 2021 trading to remain bearish.


The decline is seen to be a continuation of the bearish pattern of prices that had started in early June last year with the highest level recorded at 1.42420 for the year.


From that high, the price has also recorded a decline of more than 800 pips to continue today's trading session (Wednesday).


The pound remained weak after a disappointing return from a statement from the Governor of the Bank of England (BOE) Andrew Bailey that did not show any indication of a change in policy or interest rates.


The nomination by the permanent President of the United States (US) to appoint Jerome Powell as Chairman of the Federal Reserve (Fed) has slightly strengthened the dominance of the USD.


The next focus will be more on the release of US consumer personal spending index data that will be published in the New York session tonight as well as an indicator of the inflation rate.





The price pressure to continue to maintain the decline will see the price move back to the lows around 1.33420 before expectations are able to test the lower levels.


While a more drastic decline will see the price hit the next support zone at 1.33000 and once again will record the latest lows for 2021.


For an early indication of a change in the bullish trend will be expected to re -test the SBR zone (support become resistance) 1.34000 which was previously a support zone to the upside.


Then the further SBR zone at 1.35000 is expected to be retested after often failing to break at last week’s trading close and will likely be able to be torn apart this time.