Pound Sterling eyes acceptance above 1.1800
GBPUSD swung from a two-week low to a two-month top in a matter of a few days. This is after having climbed toward 1.1800 ahead of the weekend. The pair benefited from the US Dollar weakness, which extended on narrowing gap between monetary policies from the United States (US) and the United Kingdom (UK). The focus now shifts toward the UK Consumer Price Index (CPI) data due in the week ahead, with the US CPI data out of the way. In this article, we’ll detail GBP/USD Weekly Technical Forecast for Week 46, 2022.
GBPUSD technical outlook
GBPUSD seems to have met resistance at around 1.1800. It needs to flip that level into support in order to extend its rally. Meanwhile, the Relative Strength Index (RSI) indicator on the daily chart holds above 50. The pair closed the last two trading days above the 100-day Simple Moving Average, pointing to a significant bullish shift in the short-term outlook.
Above 1.1800, GBPUSD could target 1.1900 (static level, psychological level) and 1.2000 (psychological level, static level) next. On the downside, 1.1650 (100-day SMA, Fibonacci 61.8% retracement of the latest downtrend) aligns as key support. With a daily close below that level, sellers could action and cause the pair to slide toward 1.1500 (psychological level, Fibonacci 50% retracement, 20-day SMA) and 1.1350 (50-day SMA).
GBPUSD forecast poll
Despite GBPUSD’s impressive jump this week, experts remain skeptical about the Pound Sterling’s potential to continue to rise. Our poll points to an overwhelmingly bearish bias in the one-month and one-quarter looks with average targets for both time periods sitting near 1.1200.
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