GBP/USD Weekly Price Forecast – The British Pound Has a Wild Week

British Pound vs US Dollar Weekly Technical Analysis

The British pound has been all over the place during the course of the trading week, as we tested the 1.20 level, only to bounce significantly. That being said, it’s worth noting that the Friday session looks a little soft, and we are still very much in a downtrend. Whether or not the bulls are going to try and make a stand at 1.20 is still open for debate, but it certainly saw a nice bounce. At this point, if we break down below 1.20 level, then it’s likely that the British pound will get liquidated.

On the upside, the 1.25 level begins significant resistance that extends to the 1.26 level. If we can get above all of that, then you can make a strong argument for a move to the 1.30 level. Ultimately, that’s an area that has been important multiple times, and we have seen a lot of resistance in that general vicinity.

If the market were to break above there, then you can make an argument for a trend change. Until then, I think it’s a “fade the rally” type of market, but you may have to drop down to the daily charts in order to get a better entry point. The long-term chart certainly looks as if it is a little oversold, but quite frankly there’s so much fear out there.

Ultimately, I think this is a market that will continue to favor the greenback, just as most Forex markets well. In fact, it looks to me like the Federal Reserve is going to crash everything it has to to bring down inflation.

GBP/USD Price Forecast Video 20.06.22

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