GBP/USD Price Forecast – British Pound Continues to Seem Ready to Roll Over

British Pound vs US Dollar Technical Analysis

The British pound has initially tried to rally on Wednesday but gave back gains to show signs of exhaustion. At this point, the market continues to see a lot of negativity, and at this point it’s probably more likely than not we are going to continue to go to the downside. After all, the market has been in a downtrend for a while, so it’s difficult to imagine why things would change anytime soon. The 50-Day EMA sits just above current trading, and I think it offers the opportunity to use it as a “short-term ceiling in the market.” Furthermore, you also have the 1.15 level above there, which obviously has its own psychology attached to it.

With that in mind, I think you are more likely than not going to continue to fade rallies as they occur, as they are simple noise. The US dollar reigned supreme, and I just don’t see how the changes anytime soon, especially with the Federal Reserve monetary policy being what it is. As long as the Fed continues to tighten and there seems to be a never-ending bond crisis in the United Kingdom, at this point you have to favor the downside.

The market breaking down to the 1.10 level is very likely, but I don’t know exactly when that happens. I think this week could be a bit quiet, but quite frankly that would probably be welcomed news by a lot of traders out there. With this, I continue to fade rallies and by US dollars. If we break down below the 1.10 level, then it’s likely that the pound goes to the bottom of the recent move.

GBP/USD Price Forecast Video for 20.10.22

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