GBP/USD Forecast – British Pound Continues to Sell Off
GBP/USD Forecast Video for 28.09.23
British Pound vs US Dollar Technical Analysis
The British pound has fallen significantly during the last couple of days, and Wednesday was no different. At this point in time, the market looks as if it is ready to go looking toward the 1.20 level, perhaps even the 1.1850 level in the longer term. Ultimately, I think this is a market where every time at rallies, you need to be looking for a selling opportunity. 1.2350 level above continues to be an area that I think would offer a lot of resistance, as we have seen it to be so important in the past. Furthermore, we are getting ready to see the “death cross”, which is when the 50-Day EMA breaks below the 200-Day EMA. Nonetheless, this is a market that is a little overdone so I do recognize that we could see a bit of a bounce along the way. That bounce will more likely than not end up being a selling opportunity.
Interest rates in America continue to climb on the short end of the yield curve, and that makes T-bills and other US denominated markets attractive. Ultimately, this is a situation where I think we would see the British pound suffer at the hands of the US dollar, but I would like to see some type of bounce that I could start selling into. Yes, we could very well drop all the way to the 1.1850 level directly, but that would take some type of major crash, and I think that the currency markets will more likely than not be a bit more orderly than that.
After all, we have fallen pretty far to begin with. I think we get an opportunity to take advantage of value in that situation. It is not until we break above the 1.2350 level that I would be bullish, and even then I think I would have to rethink the entire situation before he put money to work in the British pound. After all, the British pound has even started to fall against the Japanese yen quite drastically, which of course is a very weak currency in general. This tells you just how bad things are going to be for the pound going forward.
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