GBP/USD – The Pair Price May Keep Falling Further

My FX List
March 9, 2023
Analysis for Forex Traders

Short Position

Take Profit: 1.1700
Stop Loss : 1.2000
Timeline: 1-2 days

Long Position

Take Profit: 1.2000
Stop Loss : 1.1700

As Bank of England officials issued a warning regarding the British Pound and Fed Chair Powell’s hawkish comments on interest rate hikes, the bearish outlook for the cable pair is still very strong. The price plummeted to 1.1830, which was a drop of over 5% from the year’s highest price. According to a statement made by Catherine Mann, speaking on behalf of the BoE, the British pound may keep falling further in the months to come. She added that this vulnerability might potentially cause inflation to pick up speed.

We could see that the stochastic oscillator and the Relative Strength Index were both falling on the price charts. In response to the comments from Powell and Catherine Mann, the price of the pair also fell below the 50-day Moving Average, and a bearish breakout was evident on the charts. Price fell beneath the crucial support level of 1.1924, which was also the bottom side of the descending triangle pattern which was created on the charts. Overall, the forecast for the GBP/USD pair is highly bearish with an opportunity to short.


Author My FX List