GBP/USD Price Forecast – The British Pound Trying to Recover

Christopher Lewis
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British Pound vs US Dollar Technical Analysis

The British pound has initially fallen during the trading session on Monday but turned around to show signs of life again as the market has gotten a bit oversold. That being said, the market is likely to see plenty of selling pressure above, especially near the 1.25 level. This is an area where we have seen a lot of noise previously, so one would think that there should be a certain amount of resistance. A rally at this point does make a bit of sense, but I think it is a short-lived type of situation.

I will more likely than not be looking at shorter-term charts for signs of exhaustion that I can start selling into, as I think the market has to digest some of the massive losses. With that being said, I will be more likely than not on the sidelines over the next 24 hours or so, but as soon as we get to the 1.25 handle, I will pay close attention to the first signs of weakness. The trend is most certainly to the downside, so one would think that it is only a matter of time before that continues.

Furthermore, there are a lot of concerns around the world when it comes to risk appetite, and that is going to favor the US dollar over the longer term. Given enough time, I do think this is a market that will see plenty of selling pressure, and quite frankly I think this is more of a relief rally than anything else. Because of this, I simply wait for an opportunity to pick up “cheap US dollars.”

GBP/USD Price Forecast Video 10.05.22

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This article was originally posted on FX Empire

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