GBP/USD Price Forecast – British Pound Continues to Be Noisy

British Pound vs US Dollar Technical Analysis

The British pound has been all over the place during the trading session on Wednesday, especially now that the British pound has the noise of the Bank of England buying bonds now. Ultimately, this is a market that I think will continue to see a lot of drastic behavior, and the question now is whether or not we are trying to stabilize and find a bottom, or if this is just going to be more noise. Quite frankly, the noisy behavior is going to continue to be a major issue, and therefore I think what you’ve got is a situation where we will get a bounce, but that bounces almost certainly going to get sold into.

If we break down below the 1.05 level, then it’s likely that we could go down to the parity level. That being said, the parity level course would attract a lot of headline noise, but as we have seen in the Euro, the market can continue to go much lower at that point. If we do rally from here, the 1.10 level is more likely than not going to be a psychological barrier that will be difficult to overcome, but if we were to do that, that might add a little bit more momentum into the market.

I would not hold my breath for it, but suffice to say this is a market that is most certainly oversold at the moment, so we need to approach it as such. I would prefer to fade rallies at this point instead of trying to chase the market, because sooner or later we will get that short-term bounce.

GBP/USD Price Forecast Video for 29.09.22

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