GBP/USD Price Forecast – British Pound Drifting Into the Weekend

British Pound vs US Dollar Technical Analysis

The British pound has gone back and forth during the trading session on Friday as we continue to see a lot of noisy behavior. At this point, it looks like the 1.15 level is trying to hold on as support, but if we give it up, it’s likely that we will test the 50-Day EMA. In that scenario, I would anticipate that we also have a high likelihood of breaking down. Once we get below that area, then it’s very likely that the British pound will head back toward the 1.10 level.

That being said, the panic is over, and therefore I think the selling of Sterling will probably be in a much more orderly fashion that it was in September. The alternative scenario is that the market breaks above the 1.17 level, and then takes off to the 1.20 level. This would take a weaker US dollar in general, because quite frankly the United Kingdom and the British pound are not going to be strong enough to make that move happen on its own merits.

I would anticipate a lot of noisy behavior in the short term, with an eye on the downside more than anything else. I don’t necessarily believe that this is a market that should be thought of as being bullish, just that we had a massive bear market rally again. In that scenario, a lot of people will be looking at this as an opportunity to pick up “cheap US dollars” which of course is the goal for the longer-term trader to begin with. I remain skeptical of the British pound.

GBP/USD Price Forecast Video for 31.10.22

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