GBP/USD Weekly Price Forecast – The British Pound Has Collapsed

British Pound vs US Dollar Weekly Technical Analysis

The British pound has completely collapsed during the week, as we have seen bond yields move drastically. In fact, the British pound is now at levels not seen since 1985. If the 1.10 level gets broken through, that is probably all it would take to open up the idea of parity. That being said, we are more likely than not going to see some type of relief bounce, but I think that will end up being a buying opportunity as far as US dollars are concerned. The size of the candlestick tells you most of what you need to know, that there’s real conviction in this move and the bottom is nowhere to be found.

Don’t worry, I’m sure there will be somebody out there willing to buy this pair, but at this point you are looking for nothing but trouble in that scenario. The 1.15 level above should be significant resistance, acting as a bit of a “ceiling” in the market. Ultimately, I do think that we have a situation where a break above there would freak a lot of the bears out, but that just makes for a juicier shorting opportunity.

Nothing will change in this pair until the outlook for Great Britain changes. The only thing that could come in and perhaps help this market is if the Federal Reserve suddenly changes its monetary policy, something that I do not see happening anytime soon. In this environment, it looks like we are going to see a massive breakdown, as the Bank of England is in serious trouble. Ultimately, I have no scenario in which I’m willing to buy this pair anytime soon.

GBP/USD Price Forecast Video 26.09.22

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