GBP/USD Price Forecast – British Pound Gets Crushed Again
British Pound vs US Dollar Technical Analysis
The British Gilt markets have been on fire during the trading session as bond moves have been huge. This of course has a certain amount of influence on what happens in the currency markets, so it should not be a surprise that we have seen the British pound fall apart. All things being equal, there is a situation where the market continues to have a “fade the rally” type of situation. The market continues to see a lot of negativity regardless, so I think you’ve got a situation where you have to pay close attention to the Federal Reserve and the Bank of England.
The Bank of England is likely to see a lot of pressure to raise rates due to inflation, but quite frankly the British economy is going to suffer at the hands of tightening. In this situation, is very unlikely that the British economy has good outlook, so I think you will continue to see a lot of negativity in this market. I’ve been saying the last couple of days, I’m suddenly starting to think about the idea of parity in this currency pair, which is outrageous if you have been trading for any length of time.
These are “biblical moves” that we are witnessing, but you need to be cautious about being overly aggressive. In a market like this, you will have a huge bounce occasionally, and those can be killers. Make sure to keep calm and sell signs of exhaustion. That’s all you have to do at this point, and therefore a lot of patience will go a long way. Fortunes can be made in times like this, but you must remain steady.
GBP/USD Price Forecast Video for 26.09.22
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