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

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit during the trading session on Tuesday as we continue to see this market go back and forth. Ultimately, this is a market that I think will have to make a bigger decision, but I also recognize that we are going to have to focus on the United Kingdom and its financial concerns, but at the same time we also have to pay close attention to the US dollar and the Federal Reserve.

Looking at this chart, the 50-Day EMA sits just above, and it more likely than not will offer a bit of resistance. After that, the 1.15 level comes into the picture as well, as it would be a large, round, psychologically significant figure and an area where we had seen previous support. With that being the case, the market is likely to continue to see a lot of downward pressure. The 1.10 level underneath could be an area that offers a significant amount of support, but if we do break down below there, then it’s likely that we could open up the possibility of a drop all the way down to the 1.05 level.

I think at this point in time, you are looking at rallies that show signs of exhaustion as shorting opportunities. After all, the Federal Reserve remains very tight with monetary policy, while the Bank of England has a complete disaster on its hands and of course you have to worry about energy in the United Kingdom, and therefore the economy itself. Fading rallies will continue to be the way I trade this market going forward.

GBP/USD Price Forecast Video for 26.10.22

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