GBP/USD Weekly Price Forecast – The British Pound Continues to Recover

British Pound vs US Dollar Weekly Technical Analysis

The British pound has rallied during the course of the trading week as we are seeing a bit of recovery. That being said, this is more or less going to be considered a “short covering rally”, as we had sold so drastically. If that’s going to continue to be the case, then the market is likely to see quite a bit of volatility as is normally the case, and it’s worth noting that as I record the video it is currently fighting the 1.26 region. This is an area that could be short-term resistance, but if we break above here, the British pound could take off to the outside.

As far as a trend change is concerned, it’s not until we break above the 1.30 level that I would consider the trend somewhat changed. Obviously, the market had been oversold for a while so it does make sense that we got the bounce that we did. The US dollar was overbought against multiple currencies, not just this one so we are seeing this move across the board.

Bond traders have been buying bonds again, driving yields down in America. This is partly in response to a questioning of the Federal Reserve and whether or not they are going to be able to tighten rates as much as people had priced in. Marcus had gotten to an extreme, so none of this should be a surprise. Eventually, we will continue the overall trend in both the British pound and the bond market, but right now we have a little bit of correcting to do. I think that’s all this is, and I don’t suspect that we are going to change drastically.

GBP/USD Price Forecast Video 30.05.22

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