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

British Pound vs US Dollar Technical Analysis

The British pound has been all over the place during trading on Friday, as would be expected on any Non-Farm Payroll Friday. In general, the market looks as if it is trying to decide whether or not it can build up enough momentum to continue breaking down. We made a solid attempt at doing so during the day, and as a result, I do believe that it is only a matter of time before we break lower.

Rallies at this point cannot be trusted, as the US dollar is by far the strongest currency in the world. Market participants continue to view the British pound with suspicion, especially with the sudden crisis in government. While at the end of the day the United Kingdom will somehow survive, the reality is that any uncertainty has people concerned.

The 50 Day EMA sits at the 1.2350 level and is shrinking. The market continues to favor the downside overall, but that does not necessarily mean that we can’t get the occasional rally. Those rallies should be sold into, because quite frankly trends in the Forex market take quite some time to roll over, and therefore I think you’ve got plenty of time where you will see the British pound suffer at the hands of the greenback. Again, this is probably not so much about the British pound, but more about the US dollar.

Interest rates are rising in America after the jobs report, and that should continue to help buffer the US dollar and show strength against most other currencies. With that being the case, it’s worth noting that the 10 year yield in America currently sits at 3.084%, much higher than you can get in the UK.

GBP/USD Price Forecast Video 11.07.22

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