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GBP/USD Price Forecast – The British Pound Continues to Look Vulnerable

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·2-min read
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British Pound vs US Dollar Technical Analysis

The British pound fell hard during the early hours on Thursday but then turned around to show signs of life again. Ultimately, this is a market that I think will continue to see selling pressure, and any rally at this point will be difficult to hang onto; I believe there are plenty of sellers above waiting to get involved. Because of this, I am paying close attention to the 1.24 handle.

Looking at this chart, it is more likely than not to continue to see any rallies fade on short-term charts because, quite frankly, this is a market that is an absolute mess. The Bank of England has already suggested that they will see a recession in the United Kingdom relatively soon and are the first central bank to do this honestly. On the other side of the Atlantic Ocean, you know the Federal Reserve is willing to tighten monetary policy rather aggressively, which lends to US dollar strength in general.

If we break down below the bottom of the candlestick for the trading session on Thursday, it is very likely that we will see some massive dumping of the British pound and a run to the US dollar. Ultimately, the market going would be an enormous sign of fear entering the market. We are on the precipice of something rather ugly happening, but odds favor a bit of a bounce before we go lower. That is not to say that we cannot, but without some catalyst, we will likely bounce and then fall again.

GBP/USD Price Forecast Video 13.05.22

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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