GBP/USD Price Forecast – The British Pound Continues to Fight Back

Published: Oct 3, 2022, 13:34 UTC•2min read

The British pound has gone back and forth during the trading session on Monday, as we continue to see a lot of noisy behavior, and therefore I think we will eventually see trouble.

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GBP/USD

+0.33

British Pound vs US Dollar Technical Analysis

The British pound has been a bit positive during the trading session again on Monday, as we continue to see a lot of volatility overall. We have climbed back from the massive selloff, but at this point in time I think it is a situation where we are back to basically where we collapsed. Ultimately, this is a market that I think will see a lot of noisy behavior, with a 1.15 level above being a massive ceiling. The ceiling is an area where a lot of people will be paying close attention to, especially with the 50-Day EMA sitting just above it.

The 1.10 level should be supported, so if we were to break down below there, that would obviously be a very negative turn of events. In that scenario we would see the market more likely than not continue to drop significantly. I do think that given enough time that will happen, but you should probably be cautious initially.

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I have no interest in buying the British pound because there are so many problems in the United Kingdom, and of course the Federal Reserve continues to fight for monetary tightening, which obviously makes quite a bit of sense that we would see the US dollar be attractive. With the momentum running out, I do think that the sellers will come back, as it is the long-term trend of this market. Ultimately, the US dollar is going to be like Pac-Man to the rest of the world, as it continues to eat everything else in its path.