GBP/USD Price Forecast – British Pound Bounces Back Into Consolidation

British Pound vs US Dollar Technical Analysis

The British pound has gone a little bit higher during the trading session on Thursday as we continue to see a lot of back-and-forth, but quite frankly I don’t think we have a whole lot going on due to the fact that there is a significant amount of quiet economic announcement related days this week. After all, the market continues to see a lot of confusion, but that should not be huge surprise considering just how all over the place the Bank of England is at the moment.

The one thing that we do know is that the Federal Reserve will continue to be very tight with its monetary policy, so it is more likely than not only a matter of time before the US dollar picks up strength again. Looking at this chart, the 1.10 level should offer significant support, and could be a nice target for the short term. Just above, we have the 50-Day EMA, which a lot of people pay close attention to, due to the fact that the market is so technically driven at the moment.

Furthermore, the 1.15 level has a lot of psychology attached to it as well, so does make a certain amount of sense that we would see resistance there as well. All things being equal, I think there are enough problems in Great Britain to continue to cause issues for the pound, and of course the US dollar continues to be favored due to not only higher interest rates in America, but quite frankly the safety that people desperately are searching for.

GBP/USD Price Forecast Video for 21.10.22

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