GBP/USD Price Forecast – British Pound Bounces From Extreme Plunged

British Pound vs US Dollar Technical Analysis

The British pound has plunged during the trading session on Monday, dropping all the way down to the 1.03 handle. However, we have seen the market bounce drastically from there, and it does look as if we are going to continue to see extreme amounts of volatility. That being said, this is a market that I think you will be looking for signs of exhaustion the jump all over, because quite frankly there’s no real reason to think that the British pound is going to suddenly change its tune, but it obviously had gotten overdone.

At this point, I’m looking for signs of exhaustion to start selling after this bounce, and I suspect it will probably happen much sooner than later. Ultimately, there’s no situation where I would be a buyer of this market because to continue that type of move. The British pound has a whole host of issues to deal with, not the least of which is a tax scheme and a severe shortage of energy over the course of the winter being a real possibility.

At this point, there’s no real reason to short the US dollar, and there is most certainly no reason byy the British pound. With that being the case, the market is likely to continue being very noisy, and therefore you need to be very cautious with your position sizing. Over the long term, I suspect that we have a situation where we may retest the bottom, but we got there far too quickly. Overall, this is a market that should offer plenty of opportunities given enough time.

GBP/USD Price Forecast Video for 27.09.22

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