British Pound FX Empire

GBP/USD Weekly Price Forecast – The British Pound Screams Higher

British Pound vs US Dollar Weekly Technical Analysis

The British pound has gone back and forth during the trading week, as we continue to see a lot of noisy behavior. The Bank of England has stepped into the market this week to try to drive down interest rates in the bond market, but at the same time, we also have seen a promise to raise rates, so it’s a bit schizophrenic in its behavior. This is not something that’s going to be very conducive to higher exchange rates over the longer-term, but we probably have a little further to go when you look at the weekly chart. After all, we have plunged lower, and markets do not move in one direction forever.

I would be very interested in shorting this pair closer to the 1.15 level, but I don’t know if we get there. Quite frankly, the US dollar continues to swallow almost everything, and I think that’s going to be the main story going forward. It is not a situation where I think we’ve got a lot of good news just waiting to happen, so I think you have to look at this through the prism of fading rallies, but I’d like to see more of a rally to take advantage of before I get too aggressive. In the short term, I will probably look at this through the prism of opportunities to sell the British pound against other currencies, using this as a relative strength indicator of sorts for Pound Sterling.

GBP/USD Price Forecast Video 03.10.22

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