GBP/USD Price Forecast – The British Pound Is Looking For Support

British Pound vs US Dollar Technical Analysis

The British pound bounced a bit during the training session on Wednesday as we continue to see a lot of noise right around the 1.15 level. The 1.15 level is an area that a lot of people will be paying attention to, as it is a large, round, psychologically significant figure, and an area where we’ve seen action previously. Because of this, I fully anticipate that the market will probably remain very choppy. However, if we break down through the hammer from last week, that opens up the floodgates to a much stronger US dollar.

On any rally, the top of the candlestick from the Tuesday session is probably as good as it gets, so I would be a bit surprised to see this market rally above there. If it does, that obviously would be bullish but then you have to worry about the 1.1850 level that had shown resistance previously, and the 50-Day EMA that is sitting above there and dropping. Either way, it looks like it’s got a lot of work to do to change its overall attitude.

Keep in mind that the CPI numbers on Tuesday came out extraordinarily strong, and therefore expectations for even more Fed tightening continue. Beyond that, the Fed is just now starting to run off its balance sheet, so there is probably quite a bit more pain to go as far as betting against the US dollar. With this being said, short-term rallies continue to be selling opportunities from what I can see. If we break down below that hammer, I anticipate that the 1.1250 level will be targeted eventually.

GBP/USD Price Forecast Video for 15.09.22

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