GBP/USD Price Forecast – The British Pound Has Crashed Again

British Pound vs US Dollar Technical Analysis

The British pound has fallen hard on Monday as we reached the recent lows. Ultimately, this is a market that will crash through that, but the question now is whether or not we need to balance before we do it? Of course, there’s no way to know that, but if we do bounce from here, I would anticipate that there should be a lot of people willing to get involved and short this market if they get that opportunity. After all, the US dollar is the favored currency around the world, especially as the 10-year note has a 3.25% yield as I write this.

As far as recovery is concerned, we would need to take out the 1.2650 level to the upside in order to look at this as a situation that is turning around. I don’t see that happening unless the Federal Reserve changes its stance, and the market suddenly finds its footing again. With CPI numbers coming out as hot as they did on Friday, it does suggest that perhaps inflation is getting out of control and the Federal Reserve is going to have to become extraordinarily aggressive.

Even with other central banks around the world looking to tighten monetary policy, as long as the Federal Reserve is doing it, there are knock-on effects everywhere. Emerging markets will get slaughtered, and other central banks are busy playing “catch up.” This is not to say that the United Kingdom is either an emerging market, or that the British pound is going to get slaughtered, but almost certainly is going lower at this point.

GBP/USD Price Forecast Video 14.06.22

For a look at all of today’s economic events, check out our economic calendar.