GBP/USD Price Forecast – British Pound Gaps Down

British Pound vs US Dollar Technical Analysis

The British pound has gapped lower to kick off the trading week on Monday, as we continue to see this market look for some type of longer-term direction. Quite frankly, I think the market got ahead of itself last week as the CPI number in America was lower than anticipated but it still measures for a 7.7% year-over-year inflationary rate. This is miles away from the Federal Reserve target, and we have even had several Federal Reserve governors come out and state the exact same thing.

Underneath, the 1.15 level should be supported, right along with the 50-Day EMA indicator. At this point, if we can hold that then the British pound has an opportunity for stability and maybe even a bounce. On the other hand, if we were to break through that level, then it’s likely that the British pound continues to go much lower. The market continues to be very volatile, but that’s nothing new as the British pound has been the victim of a lot of short selling pressure previously.

You could make an argument for a bit of an up trending channel, but regardless it is still not enough to change the overall long-term trend. If we can break above the 1.20 level, and then eventually the 200-Day EMA, that it’s likely that the trend will have change for a much bigger move.

The only reason you could make for that happening would be if the Federal Reserve does in fact actually slow down. This is because the Bank of England has already suggested there’s a two-year recession coming, which is not exactly good for the currency or the economy outlook itself.

GBP/USD Price Forecast Video for 15.11.22

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