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

British Pound vs US Dollar Weekly Technical Analysis

The British pound has fallen during the course of the week as we continue to see a lot of negativity thrown into risk assets. The market will continue to look at rallies with suspicion, as the US dollar continues to be like a wrecking ball against almost everything. At this point, I recognize that the 1.20 level is an area that a lot of people will have to pay close attention to, as it is a large, round, psychologically significant figure. Ultimately, the market is going to slide back and forth through that area, but there should be some type of reaction. We are oversold, so recovery is not completely out of the question.

Rallies at this point would have to deal with the 1.2250 level as potential resistance, and then the 1.25 level would be the beginning of significant resistance as well. All things being equal, we look for signs of exhaustion after rallies, and then take advantage of picking up “cheap US dollars.” The market is likely going to continue to favor the US dollar as there’s a lot of uncertainty out there with finance, and of course, the Federal Reserve is likely to continue tightening after the jobs report showed that there is still plenty of heat in the US economy.

With that being the case, I think we’ve got a situation where the market will continue to focus on the Federal Reserve, but we have sold off so drastically one would have to think that a bit of profit-taking is probably long overdue.

GBP/USD Price Forecast Video 11.07.22

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