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GBP/USD Price Forecast – The British Pound Continues to Look Sluggish

By:
Christopher Lewis
Published: Nov 17, 2022, 13:28 UTC

The British pound has pulled back a bit during the trading session on Thursday as we continue to see the correction in the US dollar slow down.

British Pound FX Empire

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British Pound vs US Dollar Technical Analysis

The British pound has initially tried to rally a bit during the trading session on Thursday, but then broke down to reach toward the 1.18 level. At this point, it looks as if the 1.20 level is an area that people are going to be paying close attention to, as it was previous support, and now has “market memory” coming into the picture. Furthermore, the 200-Day EMA sits just above, offering a bit of a dynamic ceiling in this market.

Looking at this chart, if we were to break out below the lows of the Thursday session, it’s possible that we could go down to the 1.1650 level, and then eventually the 1.15 level. While this has been a very significant bounce over the last several weeks, the reality is that it still but a blip on the radar when it comes to the longer-term trend. With that being the case, would not be surprising at all to see some type of pullback toward the 1.15 level, where the 50-Day EMA currently resides.

On the other hand, if we were to break above the 200-Day EMA, then it’s very possible that the trend has completely changed, and then we continue to go much higher. I don’t necessarily think that’s going to happen, but then again you can say that about the last several weeks. We had initially melted down due to the budgetary concerns coming out of the UK, but it looks as if we are “righting the ship” in the United Kingdom. Having said that, the US dollar is still strong, so I don’t necessarily think this is a currency I’ll be looking at buying.

GBP/USD Price Forecast Video for 18.11.22

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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