GBP/USD Price Forecast – The British Pound Has a Slight Bounce

British Pound vs US Dollar Technical Analysis

The British pound has bounced a bit during the trading session on Wednesday as the 1.20 level has offered a psychological support level. Furthermore, the US dollar failed a bit during the day as it had gotten far too overbought. At this point, we are focusing on the Federal Reserve and what it may or may not do during the day.

Ultimately, this is a market that I think continues to see a lot of noise out there, and quite frankly there is a lot of concern around the world. This has driven the US dollar higher, not to mention the fact that the Federal Reserve is in a major tightening cycle.

The European Central Bank has had an emergency meeting during the day, possibly to discuss reinvesting the bond purchases over the last couple of years, thereby acquiescing to the fact that the market is punishing everything European-related. In other words, the ECB may have just folded. The reason for this to matter is that it is possible that people are going to start paying close attention to the Bank of England, because they may find themselves in the same situation.

At this point in time, the market is likely to see a lot of volatility, but I still think that the US dollar is going to continue to see quite a bit of strength, and therefore I think it’s only a matter of time before the sellers come back to punish the British pound as the US dollar continues to be the strongest currency, especially if other central banks are going to blink on rates.

GBP/USD Price Forecast Video 16.06.22

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