GBP/USD Price Forecast – The British Pound Drops to a Significant Low

British Pound vs US Dollar Technical Analysis

The British pound has fallen a bit during the trading session on Monday, testing the 1.18 level, an area that has been very important in the past. We are now testing the most recent low, and if we were to break down below it, and opens up the possibility of a bigger move to the downside.

On the other hand, if the market is to be believed, it appears that there is a certain amount of support in this area and that the buyers are trying to step into the market in order to send the market higher. If we break above the highs of the Monday session, we could get a little bit of a bounce, but I believe that the 1.20 level will be significant resistance. In other words, I think it’s probably only a matter of time before the market sells off based upon exhaustion.

We are in a very strong downtrend, so you need to keep that in the back of your mind, as it is important. Furthermore, the 50-Day EMA sits right around the 1.2150 handle and drops significantly from there. At this point, the market is likely to continue to see plenty of selling pressure given enough time. In other words, look at rallies as opportunities to pick up cheap US dollars.

I have no interest in buying this market, at least not until we break out above the 1.26 level, and we are a significant distance from that level. In other words, I’m not even looking at the pair through the prism of buying, I’m waiting for opportunities to short yet again, be it a breakdown or a bounce that shows exhaustion.

GBP/USD Price Forecast Video for 23.08.22

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