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

British Pound vs US Dollar Technical Analysis

The British pound initially shot higher during the day on Wednesday but then fell again as we continue to see the US dollar strengthen against almost everything. Because of this, it looks as if the British pound is going to continue to go much lower, perhaps opening up the possibility of breaking through the 1.16 level and going to the 1.15 level. It won’t necessarily be a straight shot down, but it’s worth noting that we are in a very negative trend, and therefore it’s difficult to imagine a scenario where we turn around and take off.

As long as the situation in the United Kingdom looks dire, and of course, we have the Federal Reserve doing everything they can to tight monetary policy, it’s difficult to imagine a scenario where the GBP/USD pair suddenly takes off to the upside. I believe that the 1.18 level above is resistance, perhaps somewhere near the 1.19 level. After that, we have the 1.20 level where the 50-Day EMA is coming into the picture, and there is a bit of market memory based on previous support.

In other words, there are a lot of different things going on between here and there that I think it’s going to be difficult to change everything. Quite frankly, we would need to see some type of massive change in fundamentals to make this appear like a reasonably bullish market. We are nowhere near there, and I think we continue to see a lot of negativity more than anything else as there is so much fear in the market right now.

GBP/USD Price Forecast Video for 01.09.22

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