GBP/USD Price Forecast – British Pound Continues to Look For Stability

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit during the trading session on Tuesday as we are trying to figure out whether or not we are getting close to the bottom. Openly, the British pound has a lot of issues as the United Kingdom is all over the place with what is going to happen next during the couple of months. At this point in time, I think that the 1.10 level above there could be a major barrier, and at this point anytime we get a little bit of a rally, I suspect that we are going to see over the next several months.

The US dollar has been strong into the Federal Reserve monetary policy and that’s not going to change anytime soon. Because of this, it’s probably a matter of time before rallies get squashed. In fact, we would need to break above the 50-Day EMA, sitting just above the 1.15 handle. The market will continue to be one that I look at with suspicion, but we are oversold to say the least so I think this bounce makes a lot of sense and could set up the next significant trading opportunities.

There are traders out there that are starting to talk about the Bank of England raising interest rates 200 basis points in November, which is more likely than not going to be false, but at this point in time is likely that we continue to see a lot of volatility, but will favor the downside.

GBP/USD Price Forecast Video for 28.09.22

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