GBP/USD Price Forecast – The British Pound Gives Up Early Gains

British Pound vs US Dollar Technical Analysis

The British pound initially rallied on Tuesday but gave back quite a bit of the gain to not only roll over a bit but fall to fresh, new lows. It looks as if the British pound is now going to attempt to make a move to the 1.20 level, and perhaps even lower. The 1.20 level is an area that is a large, round, psychologically significant figure. If we can break it down below there, then the British pound is going to continue to fall rather significantly.

The interest rates in the United States continue to skyrocket, most notably in the 10-year note, so traders will continue to favor the US dollar in general. It looks as if a recession is all but guaranteed at this point, perhaps on a global scale. If that is going to be the case, then it’s likely that we have the US dollar strengthened against almost everything as people run to the US dollar for safety. I do believe that is exactly what’s about to play out, therefore I look at any rally as a shorting opportunity. It’s obvious that the British pound is starting to break apart against the greenback, but that should not be a huge surprise considering so many other currencies are doing the same thing.

If we break down below the 1.20 Hannah, then the next move is probably to the 1.18 level. Conversely, if we do rally from here, I believe that the 1.25 level is going to offer a significant resistance barrier that will be almost impossible to break through.

GBP/USD Price Forecast Video 15.06.22

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