Yahoo Finance GBP/USD Weekly Price Forecast – The British Pound Continues to Stabilize
British Pound vs US Dollar Weekly Technical Analysis
The British pound has had a relatively quiet week, hanging around the 1.23 level. At this point, if the market were to continue to grind higher from here, it’s likely that we will see a move to the 1.25 handle. The 1.25 level is an area that has been imported a couple of times, so I think that the market will be somewhat attracted to that area. The market will almost certainly look at that as an opportunity to start shorting again unless something changes quite drastically with the central banks in question.
The Federal Reserve is in a massive tightening cycle, so that does work in favor of the US dollar in general. While the Bank of England will probably have to do something to fight inflation, it does not look as though they are going to be as aggressive as the Americans.
If we break down below the lows of the week, then we could drop to the 1.20 level underneath, an area where we have seen a lot of support previously. This is an area that I think has a lot of psychology attached to it and therefore does make a decent target. On the upside, if we were to break above the 1.26 handle, then it more likely than not will open up the possibility of a move to the 1.30 handle. That being said, the momentum of this market has been so negative that I think it’s only a matter of time before the ugliness returns. I continue to fade rallies on signs of exhaustion.
GBP/USD Price Forecast Video 27.06.22
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This article was originally posted on FX Empire
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