GBP/USD Price Forecast – British Pound Pulls Back From Trend Line

British Pound vs US Dollar Technical Analysis

The British pound has initially tried to rally during the trading session on Thursday but gave back gains rather quickly as the trendline has worked against it. By doing so, the market looks as if it is going to continue to see a lot of volatility, and of course the US dollar strength is not necessarily something that’s going to go away anytime soon. The 1.15 level underneath could be important, and if we break down below there I think it will bring in even more selling pressure.

The 50-Day EMA sits just below the 1.15 level as well, so I think that does come into the picture also. Keep in mind that the US dollar is considered to be a safety currency, and of course we have a lot of concerns in the United Kingdom to begin with. There was a major relief rally, and at this juncture I think it’s likely that we continue to see plenty of reasons to worry about the global economy.

On the other hand, if we were to break above the trendline, that could give the signal that the market is ready to go looking toward the 1.18 level, followed by the 1.20 level. At the 1.20 level, then you start to look at the possibility of a complete trend change. That’s probably a bit much at this point, even after a massive turnaround in the overall selloff. Because of this, I think the British pound does lose ground, but it may not be as violent as it was just a few weeks back.

GBP/USD Price Forecast Video for 28.10.22

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