GBP/USD Weekly Price Forecast – The British Pound Gets Pummeled

Published: Aug 19, 2022, 14:55 UTC•2min read

The British pound has gotten hit very hard during the course of the week to break back down below the 1.20 level, we’re getting very close to breaking down even further.

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GBP/USD

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British Pound vs US Dollar Weekly Technical Analysis

The British pound has gotten hit very hard during the course of the week to break back down below the 1.20 level, an area that of course has offered quite a bit of noise on daily charts. Now that we are well below there and threatening to make a fresh, new low, that is a very ugly turn of events for the pound. Furthermore, the US dollar is getting stronger against almost everything yet again, and it’s likely that we will continue to see traders focus on those bond markets more than anything else.

The size of the candlestick is also something worth paying attention to because it shows that we still have a lot of impulsive momentum to the downside. Quite frankly, there’s nothing on this chart that looks remotely bullish, and therefore think you have a situation where if we do rally, it will probably attract a lot of selling pressure. That being said, you may have to do it off of a daily chart, but it’s clearly a negative market. Because of this, I think you need to look at this through the scenario of looking for “cheap US dollars.”

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This has been the way going forward for several months, and that has not changed. The market will continue to look to the downside, and I think we could be aiming for the 1.15 level given enough time. If we do a turnaround at this point, then we would need to break above the 1.25 level for me to be convinced that the trend has changed. After all, there are a lot of things working against anything that is not the dollar.