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

British Pound vs US Dollar Technical Analysis

The British pound has fallen hard again during the trading session on Friday as we continue to see the US dollar pummel everything in its path. As long as there is a lot of fear out there, it’s difficult to imagine a scenario where the British pound suddenly becomes much more favored over the US dollar, especially now that the Bank of England has stated that a recession is almost guaranteed. Because of this, the British economy is going to continue to slow down, and therefore it makes sense that people would look for the safety of the greenback. That being said, we are getting close to an area where we just bounced from.

If we do break down below the 1.18 region, then we could open up fresh selling down to the 1.15 level over the intermediate term. On the other hand, we could bounce from the 1.18 level and attempt to recapture the 1.20 level. If that were to be the case, then it’s obvious that there should be a significant amount of psychological and structural pressure there as it had been in previous support. Market memory should come into play, so it’ll be interesting to see how that behaves.

Regardless, I do think that we break down below the bottom up eventually and go much lower. The US dollar is going to be like a wrecking ball to the world’s financial system, for a multitude of reasons that are beyond the scope of this article. I have no interest in buying the British pound anytime soon but will let you know as soon as things change.

GBP/USD Price Forecast Video for 22.08.22

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