GBP/USD Price Forecast – The British Pound Continues to Fall

British Pound vs US Dollar Technical Analysis

The British pound has fallen rather hard during the Friday session, breaking to a fresh, new low. Because of this, the market is going to continue to be a “fade the rally” type of situation, signifying that we are in fact very likely to continue going much lower. The markets are going to be negative as long as the Federal Reserve continues to tighten monetary policy, and of course, the Bank of England needs to worry about a recession. The Bank of England has no real route to softening the below right now, so one would have to think that we will continue to see a lot of downward pressure on the UK economy.

At this point, I would anticipate that the 1.15 level should end up being rather resistive, as “market memory” should come back into play. Breaking above there would be a good sign, but we are nowhere near changing the attitude of the market even if that happens. Every time this market rallies, you should be thinking about picking up “cheap US dollars.”

The 50-Day EMA is racing toward the 1.18 level, which is almost 500 points from where we felt toward. Because of this, the market is likely to continue being very noisy going forward, and of course, a volatile market means that we may get the occasional shot higher. That being said, the short-term rallies should end up offering plenty of opportunity, and unless the Federal Reserve changes its overall attitude, I just don’t see how this pair changes its trend anytime soon. That being said, in the future, this will be a career-making long opportunity. We are nowhere near that yet though.

GBP/USD Price Forecast Video for 19.09.22

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