GBP/USD Weekly Price Forecast – British Pound Pulls Back From 1.20

British Pound vs US Dollar Weekly Technical Analysis

The British pound initially tried to rally during the trading week but found the 1.20 level to offer resistance. At this point, the market is likely to see a little bit of hesitation, but at this point it’s difficult to see how this market continues to go straight up in the air, and therefore I think you’ve got a situation where we are more likely than not going to continue to see the US dollar strengthened over the longer term.

Granted, we have had one hell of a bounce, but you need to keep in mind that at one point we had gotten way ahead of ourselves due to the budgetary concerns in the United Kingdom. That has been fixed, and therefore we can go back to the typical fundamentals.

That being said, the Federal Reserve remains very tight with his monetary policy, while the Bank of England is already talking about a potential two-year recession. Because of this, I think it makes a lot of sense that we would see the pair eventually rollover, perhaps back down to the 1.15 level. On the other hand, if we do get more “opium” out there, then people will start to sell the US dollar again, perhaps sending this market for the 1.22 level where we could see the 50-Week EMA.

Look at this chart, it’s very likely that we are going to see a lot of volatility, but I do think given enough time we will continue the overall downtrend. Ultimately, this is a situation where we see a nice recovery, but it is more of a technical nature than anything else at this point.

GBP/USD Price Forecast Video for 21.11.22

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