GBP/USD Price Forecast – The British Pound Continues to Struggle

British Pound vs US Dollar Technical Analysis

The British pound has found itself at the center of attention for most traders around the world, as we continue to see a lot of volatility and concerns about the bond market in the United Kingdom grab headlines. Ultimately, the US dollar is going to continue to be the strongest currency around the world right now, and I think that will continue to be the case. With that situation, I’m looking at this through the prism of the 50-Day EMA above offering a significant amount of resistance, right along with the 1.15 level.

If we were to break down below the bottom of the candlestick for the session on Tuesday, then the market very well could find itself looking to get back down to 1.10 level. The 1.10 level is where we had bounced from previously, and it should continue to be very attractive for support. If we break down below there, then it’s likely that the market could go down to the 1.05 level.

The 1.05 level underneath has been a major floor, but I think it gets retested given enough time. Ultimately, this is a situation where the market will almost certainly remain volatile, but I think we need to wait until we get some type of exhaustion candle to start shorting again. Not only do we have the 1.15 level in the 50-Day EMA, but a significant downtrend line sitting just above there.

Unless the Federal Reserve changes its overall monetary policy, it’s difficult to imagine how the US dollar would suddenly sell off. I like the idea of fading rallies, but I need that exhaustion candle to get into the market.

GBP/USD Price Forecast Video for 19.10.22

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