GBP/USD Price Forecast – British Pound Pulls Back From Trendline

British Pound vs US Dollar Technical Analysis

The British pound has pulled back from a trendline on Monday just as we have over the last couple of sessions, trying to figure out whether or not the market is comparable above 1.15 against the dollar. The 50-Day EMA’s is just below there, so it should offer certain amount of support. However, if we were to break down below that indicator it could continue the overall downtrend in the British pound. This would make a certain amount of sense, as the UK economy has a whole host of issues, and as a result I would anticipate that the British pound continues to suffer at the hands of the US dollar.

This will be especially true if the Federal Reserve meeting is anywhere near as hawkish on Wednesday as I anticipated it being. There are people out there that believe the Federal Reserve is going to shift monetary policy, but quite frankly, that’s a lot of wishing. Just because the Bank of Canada and the Reserve Bank of Australia did not hike as much as originally thought, does not mean that the Federal Reserve is on the same trajectory.

In fact, I believe that we are setting out for a lot of disappointment on Wednesday, meaning that we will see a rush back into the greenback given enough time. Ultimately, this is a market that as long as we have to worry about the British economy heading into the winter and of course the Federal Reserve tight, the overall downtrend should continue, and therefore I would not be surprised at all to see this market reached the 1.10 level underneath.

GBP/USD Price Forecast Video for 01.11.22

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