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GBP/USD Price Forecast – The British Pound Pulls Back Slightly

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British Pound vs US Dollar Technical Analysis

The British pound has pulled back just a bit during the trading session on Friday as we have run out of momentum. Ultimately, this is a market that has bounced quite viciously, but this is a market that has been very negative for a while. Ultimately, it’s likely that we will continue to see the US dollar strengthen. Looking at this chart, it’s likely that we will see more downward pressure because quite frankly we’ve been in a downtrend for quite some time. I don’t think anything has truly changed, as the Federal Reserve is likely to change its attitude, and therefore it’s likely that we will see plenty of bullish pressure for the greenback. This is especially true considering there’s so much fear out there.

Above, I see the 1.25 level as a major resistance barrier, extending to the 1.26 level. In that area, I would anticipate a lot of downward pressure, assuming that we can even get to it. If we were to break above the 1.26 level, then you could make an argument for the British pound to go to 1.30, but really, I don’t see that happening.

The downtrend almost certainly has this market looking at the 1.20 level as a potential breakthrough area, and if we do drop below that level it’s likely that the British pound will continue to see further downward pressure, and we will see a significant breakdown. When you look at the overall Forex picture right now, the US dollar is by far the strongest currency, and I do not see that changing anytime soon. In other words, I will be feeding rallies as they occur.

GBP/USD Price Forecast Video 20.06.22

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This article was originally posted on FX Empire

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