GBP/USD Price Forecast – Pound Continues to Look Threatened

GBP/USD Forecast Video for 09-02-2024

British Pound vs US Dollar Technical Analysis

The British pound has fallen pretty significantly during the trading session on Thursday as we see the US dollar strength then across the board. At this point, it looks like everybody’s panicking again, but that’s not a huge surprise considering just how erratic the markets are. This is going to be a situation where we continue to watch the bond markets and what’s going on in the 10 year yield in America.

If the yield starts to rise, that obviously strengthens the US dollar and therefore, we don’t have much of a surprise here. The British pound, of course, is struggling at the hands of the dollar. It is stronger against some other currencies, though, so at this point in time, I think this is more or less a US dollar story more than anything else. We are currently between the 50 day EMA above and the 200 day EMA below, so a little bit of noise would be expected.

It would not surprise me at all to see this market bounce from the 200 day EMA. So I’m not looking for big moves at this point in time and in fact, I think that by the time this is all set and done, it will be put a blip on the radar. However, if we were to break down below the 200 day EMA, then it would be very negative, perhaps sending this market much lower in that environment.

I think the 1.23 area would be roughly where we end up as the 1.25 level is offering a little bit of support right around that 200-day EMA. Also, keep an eye on bond yields in the United States because that will obviously have a major influence on where we go next and, of course, whether or not the BOE says anything that shakes the market. Until something changes from a fundamental standpoint, I suspect this is a market that will be very noisy and something that will have to be approached with a bit of caution.

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