GBP/USD Price Forecast – The British Pound Slams Into a Major Figure

British Pound vs US Dollar Technical Analysis

The British pound rallied a bit during the trading session on Monday, reaching as high as the 1.20 region. We have pulled back a bit from there, suggesting that the 1.20 level will be defended. Furthermore, the Federal Reserve is getting ready to hike interest rates, some people think as many as 100 basis points. That should continue to put a bit of a bid on the US dollar, and therefore I think you will continue to see exhaustion from time to time.

I’m looking for some type of exhaustion candle to get involved, but I also recognize that the market is going to be noisy, to say the least. Ultimately, I think the market is still very much in a downtrend, so even if we do rally from here, the 50 Day EMA comes into the picture near the 1.2250 level. That being said, the market is likely to find reasons to start shorting given enough time. With that being the case, I’m simply waiting for a nice opportunity to pick up “cheap US dollars.” In this scenario, it’s simply a matter of waiting patiently for an opportunity to get involved.

The market has been oversold for a while, so keep in mind that the market is due for some type of bounce. I think that’s what we are currently seeing, especially with the FOMC meeting coming, the Federal Reserve has entered a period of silence, and therefore we may have a couple of opportunities down the road, as we continue to see traders unwind positions.

GBP/USD Price Forecast Video for 19.07.22

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