GBP/USD Weekly Forecast – British Pound Plunges

Christopher Lewis
Published: Sep 22, 2023, 15:15 GMT+00:00

The British pound has fallen during the course of the week after the Bank of England chose not to raise rates.

British Pound coins, FX Empire

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GBP to USD Forecast Video for 25.09.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has initially tried to rally during the week but then gave back all of the gains to show signs of weakness. Ultimately, this is a market that continues to see a lot of downward pressure, and this past week has also seen the Bank of England choose to sit still with its interest rate decision, which is something that people didn’t think was going to happen. Because of this, it’s likely that we will continue to see downward pressure, and if we can break below the bottom of the candlestick, it opens up a move down to the 1.20 level, possibly even the 1.1850 level.

Rallies at this point in time should continue to be selling opportunities, and as it seems like the economic news is getting worse, it’s very likely that we will continue to see the British pound drop. Alternatively, it’s not until we break above the 1.25 level that I would consider buying this pair, and it would obviously take quite a bit of momentum and attitude adjustment to make that happen. Quite frankly, I think the US dollar is about to destroy most things, and the British pound might not be any different anytime soon.

Having said that, this is one of the situations like cracking ice, it is very slow at one point, and then all of a sudden everything breaks apart. That might be what happens next. I would assume that sooner or later we get a short-term bounce, but that bounce should offer plenty of opportunity to take advantage of. The US dollar will more likely than not strengthen not only against the British pound, but also the euro and other major currencies.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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