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

British Pound vs US Dollar Technical Analysis

The British pound has found itself struggling around the 1.15 level yet again during the trading session on Thursday as US dollar strength continues around the world. The retail sales number they came out of the United States shows that the Federal Reserve will continue to have to be very hawkish, and therefore the US dollar will more likely than not continue to gain. That being said, the 1.15 level is a major barrier to overcome, so it’ll be interesting to see if and when we can do it.

I do think we break down below here, and the real signal will be when we break through the hammer from last week. If and when that happens, the British pound will more likely than not go looking to the 1.1250 level. This is not to say that we cannot rally from here, but I think rallies more likely than not will end up being selling opportunities in a scenario that would be short-lived at best. The 50-Day EMA sits right around the 1.1850 level and is dropping.

Even if we were to break through all of that, the area 1.20 would be very difficult to overcome, as there would be a bit of a trendline in that same general vicinity as well. All things being equal, I believe you will want to continue to own US dollars, and that the Bank of England is going to have its hands tied, meaning that it will be difficult to own the British pounds in the near future. Longer term, this may be one of the great trades to the upside, but we are miles away from that right now.

GBP/USD Price Forecast Video for 16.09.22

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