GBP/USD Weekly Forecast – British Pound Plunges After Initial Rally

GBP to USD Forecast Video for 16.10.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound initially tried to rally during the trading week, but then gave back gains rather quickly as it looks like the US dollar is going to end up destroying almost everything in its path. As there are concerns about geopolitical problems, and of course the fact that interest rates in America continue to climb, it does make a significant amount of sense that we would see this market turnaround the way it has.

Whether or not that remains its trajectory will be seen, but it’s worth paying attention to the bottom of the candlestick from the previous week, because if we break down below there, things could get rather ugly in short order. In that environment, I think you have to look at this as a market that continues to offer a “fade the rally” type of scenario, as risk appetite is all over the place.

I believe that the 1.20 level will be targeted, and then eventually we will probably see the 1.1850 level come into the picture as it is a major swing low that we had seen previously. Ultimately, this is a market that I think given enough time will probably offer plenty of value that you can get involved with, and with that being the case, the market is likely to continue to see a lot of volatility and therefore it does tend to favor the US dollar in those times as it is considered to be safety. If we were to turn around a break above the 1.2350 level, then the market could open up the possibility of a move much higher, as it would show a significant destruction of resistance. Having said that, it’s very unlikely to happen anytime soon.

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