GBP/USD Price Forecast – Sterling Continues to Find Volatility

British Pound vs US Dollar Technical Analysis

The British pound has gone back and forth during the course of the trading session on Thursday as we continue to hang around the 1.25 level. This is an area that people will be paying close attention to as it is a large, round, psychologically significant figure, and an area where we have seen a lot of noise in the past. Ultimately, this is a market that will have to figure out what it wants to do for the longer term. The low of the week being broken to the downside could open up a bigger move, perhaps down to the 1.22 level after that.

The 50 Day EMA is sitting just above the 1.2650 level, and if we can get above there is likely that the market goes looking to the 1.30 handle above. That would be a massive correction, but at this point still would keep this market in a downtrend. The 1.30 level is where I decide whether the trend has changed or not. If we do break above there, then it’s very likely that we will have reversed the entire situation.

That being said, the market is likely to continue to find signs of exhaustion to jump on it and fall again. I think rallies are to be shorted on short-term charts, but the CPI figure on Friday could have a major influence on what happens next. If inflation numbers in the United States come out hotter than anticipated, that will almost certainly send this pair lower. All things being equal, this is a market that continues to see a lot of noisy behavior, but I still have to favor the downside at this point.

GBP/USD Price Forecast Video 10.06.22

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