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GBP/USD Weekly Price Forecast – British Pound Has a Rough Week Again

By:
Christopher Lewis
Published: Nov 4, 2022, 14:45 GMT+00:00

The British pound has had another rough week, as we pierced the 1.12 level at one point, but did bounce on Friday.

British Pound FX Empire

British Pound vs US Dollar Weekly Technical Analysis

The British pound has fallen hard during the course of the weekend as we continue to see a lot of negativity when it comes to the UK. After all, the Bank of England had forward guidance that was absolutely horrific. They suggested that the recession in the United Kingdom could last 2 years, and that of course has people running from anything British related. However, the jobs number came out on Friday and for some reason people look at it as a potential bullish situation, so we’ve seen the British found bounce a bit. Whether or not that had any legs to it and matters or if it just simply weekend short covering, nobody will ever know.

You can see just how oversold this market is, so we could get a reasonable rally, but that rally will more likely than not be sold into sooner rather than later. I think that the longer-term trader has to look at shorter-term charts or signs of exhaustion to get involved, but when you look at the weekly chart, you can clearly see that we are still very much negative, and it’s probably worth noting that the 1.10 level underneath has not been retested, and it makes a juicy target. After that, we could se a move to the 1.05 level, which is where the market had bounce from to begin with.

Keep in mind that the Federal Reserve remains tight, while the Bank of England has to deal with massive recessionary headwinds. In that scenario, I think you continue to see the US dollar strengthened, and therefore I’m not surprised at all to see the possibility of this market going back down to the lowest, and then possibly parity.

GBP/USD Price Forecast Video for 07.11.22

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

About the Author

Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.

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