GBP to USD Forecast – The British Pound Powers Higher
GBP to USD Forecast Video for 02.12.22
British Pound vs US Dollar Technical Analysis
The British pound has rallied significantly during the trading session on Thursday as the 1.22 level of resistance is being thoroughly tested. At this point, we are reacting to the Core PCE figures, the came out at 0.3% month over month, adding yet another layer of questions about inflation in the United States, as the numbers came out slightly cooler than anticipated, it makes a certain amount of sense that there is bullish behavior.
Quite frankly, we also have the jobs number that could come out and squash the rally, or kick it into higher gear, that remains to be seen. The next couple of days are going to be horrifically volatile, but at this point it’s likely that we will continue to see a lot of people pay close attention to the fact that Jerome Powell at least suggested that the Federal Reserve was going to slow down.
At this point, I anticipate that the weekly close will determine where we go for the next several weeks later. I do believe that you have to be extraordinarily cautious at this point, but it certainly looks as if the US dollar may be change in the longer term direction. I think we are a major inflection point that could cause a lot of problems, but at this point in time I do think that it’s a situation where a lot of people are going to get hurt, so you need to be cautious with your position sizing.
The weekly close will be the most important thing to pay attention to, but we are most certainly on the verge of changing trends. Whether or not that is warranted is a completely different question, because it’s worth noting that the Federal Reserve will remain tight for the longer term, so at this point it’ll be interesting to see whether not that follows through.
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