GBP/USD Price Forecast – The British Pound Is Trying to Stabilize

British Pound vs US Dollar Technical Analysis

The British pound has done a little bit of grinding sideways during the trading session on Friday as it looks like we are trying to stabilize a bit. At this point, the market is more likely than not going to be a scenario where the market has a little bit of a bounce, but I do not think that the bounce is going to lead to anything more than a selling opportunity at a higher level. The 1.20 level is a large, round, psychologically significant figure and an area where we have seen both support and resistance previously. Because of this, this is a market that will see a certain amount of “market memory” in that region.

On the other hand, if we were to break down below the Thursday session minimum, then it’s possible that we could go even lower. At that point, we could go to the 1.17 level, perhaps even down to the 1.16 level. Ultimately, this is a market in that I don’t have any reason whatsoever to start buying. The 50 Day EMA is currently at the 1.2275 level and is dropping significantly. That should offer dynamic resistance, but we are miles away from that area, and with that being the case, the market continues to see a lot of choppy behavior.

With that in mind, I think this is a “fade the rally” type of situation going forward, therefore I don’t have any interest whatsoever in trying to fight the overall momentum. The Federal Reserve continues to tighten, so therefore it’s likely that we will see more of the same action that we have seen over the last several months.

GBP/USD Price Forecast Video for 18.07.22

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