GBP/USD remains depressed below 1.3450 amid USD strength, Brexit woes

November 22, 2021

GBP/USD is recovering ground towards 1.3450 heading into the European open, as the risk sentiment improves. However, the further upside appears elusive amid stronger US dollar and persistent Brexit worries. BOE’s Bailey downplays inflation concerns, eyes on risk trends, Brexit.

GBP/USD is at a crossroads at this juncture considering the support structure, both horizontal and dynamic. The bulls could be looking to engage here which would see the price headed back towards 1.35 the figure again and potentially onward to 1.3550.

On the downside, as illustrated above, a break of the support structure is what the bears will be looking for with a subsequent continuation of the dominant trend.

On the 4-hour chart and on a break of support, bears could seek to engage with a restest of the area near 1.34 the figure that would be expected to act as resistance.