GBP/USD Weekly Price Forecast – British Pound Continues Volatile Ride
British Pound vs US Dollar Weekly Technical Analysis
The British pound has been all over the place during the course of the week, but with everything that’s going on it should not be a huge surprise. After all, the Federal Reserve remains very tight with its monetary policy and therefore the US dollar has been strong in general. However, the British pound is suffering at the hands of incompetence, as the latest budget caused an uproar. We are now getting reports that perhaps some people are going to be sacked, and that the budget is going to be turned around. Regardless, the UK economy was always going to suffer.
At this point, traders are starting to pay close attention to the idea that it could be a rather rough winter for both the European Union and the United Kingdom. They are cut off from energy, at least the amount of energy they are used to. This is going to be an economically difficult few months for the UK, and as a result people have been selling the pound. Furthermore, the Federal Reserve remains tight in its monetary policy and still getting high inflation numbers from CPI, PPI, and other metrics, means that this trade should continue to be one that goes lower.
Having said that, we are oversold so does make a certain amount of sense that we could bounce for the short term, but I’d be a bit surprised to see this market take out 1.17. You will notice that the trendline I have drawn on the weekly chart is extraordinarily steep, that normally bags for some type of relief rally sooner or later. Think of any rally as an opportunity to pick up “cheap US dollars” as you start shorting.
GBP/USD Price Forecast Video for 17.10.22
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