GBP/USD Price Forecast – The British Pound Continues to Grind Lower

British Pound vs US Dollar Technical Analysis

The British pound has gone back and forth during the trading session on Thursday but with more of a downward tilt than anything else. At this point, the market looks as if it is going to try to get down to the 1.20 level, an area where we had bounced from previously. The US dollar continues to strengthen due to higher interest rates, and of course, the fact that the Federal Reserve looks likely to continue typing rather aggressively.

When you look at this chart, there is plenty of resistance near the 1.23 level, and I think it’s probably only a matter of time before we see this market fail in an attempt to get above that level. I think given enough time, this is a market that will not only test the 1.20 level but could very well break through it. If we do break through that level, it’s likely that we see the British pound drop to the 1.18 level, possibly the 1.16 level after that.

If we do turn around, I anticipate that there is a huge resistance barrier nearly 50 Day EMA, and the 1.25 level. The 1.25 level extends its resistance all the way to the 1.26 level, and therefore I think it is likely that we continue to see more of a “fade the rally” attitude, even if we do turn things around for a nice bounce. Ultimately, the US dollar continues to be the strongest currency in the world, and there is nothing on this chart that suggests it’s about to change anytime soon.

GBP/USD Price Forecast Video 01.07.22

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