GBP/USD Price Forecast – The British Pound Gives Up an Early Gain

British Pound vs US Dollar Technical Analysis

The British pound has initially tried to rally during the trading session on Tuesday but gave back gain rather quickly during the trading session. Because of this, it looks like the market is going to continue to see a lot of negativity, and perhaps a run to the US dollar. Quite frankly, the US dollar is like a wrecking ball to everything else, and the British pound will be no different. That being said, the market is going to continue to see rallies as selling opportunities to pick up “cheap US dollars.”

This winter is going to be a complete disaster for the European Union, and United Kingdom. Because of this, we should continue to see a lot of downward pressure in this market. I believe that the 1.19 level is resistance, right along with the 1.20 level. The 1.20 level is an area where we would see a lot of negativity, especially with the 50-day EMA sitting just above there. In other words, it should continue to be a scenario where we fade rallies. In fact, I have no interest in buying this pair until we break at least the 1.23 level, and even then, it’s more or less a 50-50 equation.

The markets will continue to be volatile, and that typically means that people will prefer to run toward safety. Safety is the US dollar, and that has not changed. Because of this, I am more than willing to short every rally in the near term, at least until something changes from a fundamental standpoint.

GBP/USD Price Forecast Video 31.08.22

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