GBP/USD Weekly Price Forecast – The British Pound Slams Into Resistance

British Pound vs US Dollar Weekly Technical Analysis

The British pound has turned around to show signs of strength, perhaps trying to recover the oversold condition. The candlestick is rather impressive, but it should be noted that the 1.25 level seems to be offering a bit of resistance. It is hard to tell whether or not we are going to continue to see a continued recovery. Quite frankly, the fundamentals lineup for the US dollar to continue strengthening, as well as the British pound to continue falling. The Federal Reserve continues to be extraordinarily hawkish, and there are concerns out there when it comes to global growth and demand in general.

I look at this past week as a bounce from oversold conditions, but a continuation of the downside does make quite a bit of sense. At this point, it looks as if the market is one that you will continue to fade rallies in, as there is no real reason to shun the greenback at the moment. With this being the case, I like the idea of looking for signs of exhaustion on shorter-term charts in using that for entries, while keeping the weekly chart in the back of your mind. If we do break out from here, there is still plenty of resistance at the 1.26 level, and then again at the 1.30 level.

At this point, we would need to see a shift in expectations globally, and perhaps even a shift in the attitude of the Federal Reserve to change everything. I do not see that happening, and therefore it is likely that we do end up lower over the next several weeks.

GBP/USD Price Forecast Video 23.05.22

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