GBP/USD Price Forecast: Pound Testing Massive Support

from Daily Forex. This is Christopher Lewis taking a look at the British pound against the US dollar. The British pound initially did try to rally a bit during the trading session on Monday, but has since fallen pretty significantly. We are sitting on top of a reasonably important demand zone between 1.3150 and 1.32. This is an area that I think will remain very important and as long as we can stay above the 1.3150 level, we do have the possibility of a bit of a recovery. Whether or not that actually plays out remains to be seen, but the interest rate situation is going to continue to be something important and a driver of the US dollar. due to the Federal Reserve likely to raise rates between now and the end of the year. The question of course is whether or not the British can. I don't know that. But we're we are at the bottom of a larger uh range that we have been in for quite some time with the exception of one or two small throwovers. So from a technical analysis standpoint, this is a market that you would think would be looking for buyers right now and trying to find a reason to bounce. That would more likely than not come in the form of government bonds seeing lower yields in America. We'll see. If we break down below 1.32, then another 100 pips to the downside could be a bit of a target. If we turn around and break above the 1.33 level, then we probably have further to go to the upside. We'll just have to wait and see how this all plays out. Ultimately, this is a market that I think could offer a little bit of value and the British pound has been a bit more stagnant against the dollar over the last couple of years than many other currencies. So, if the dollar starts selling off, this might be the first place that I start looking for selling the green bag.