Recently, while I was looking through the charts on Irontrade.com, the situation looked clear and even familiar to me. Even though it is getting slow, the dollar rally is still going on. On the other hand, the GBP has nothing to show. The situation with energy resources is still complicated, and the US economy continues to grow at a sustained pace. Also, the coming Christmas adds extra pressure on authorities to provide at least any positive news. The current situation may be perceived as positive in a month already because winter is coming!

Fundamental arguments

Instability in the energy market, world food crisis, inflation, a new variant of the virus – all these obviously do not add positivity to the GBP. Some risks are complementary to the US dollar, and the overall situation is a little more positive.

Technical arguments

From the technical point of view, GBP/USD continues its long-term downward trend with temporary corrections.

Big traders analysis

Picture 1. A price chart of the GBP/USD and the indicator of big traders for the period of 09.11.2021 – 06.12.2021 are provided by Irontrade.

As we can see in picture 1, demand for GBP has fallen significantly and continues to reach new lows. The trend continues towards the dollar. Also, the consolidation of demand at low levels is not good for GBP.

Forecast

Considering all the above, we expect the “DOWNWARD” trend for the asset. This is confirmed by the level of demand among major traders and weaker economic prospects.

FORECAST FOR GBP/USD – DOWN

We recommend using the SMA (15) to better control your positions. SMA helps to identify the trend and trade in accordance with its direction.

We recommend to keep on average 3 trade DOWN and 1 trade UP simultaneously.

Try to implement this trading strategy on Irontrade to get higher incomes from this trading idea! Good luck!