GBP Q1 2022 Technical Forecast: Can the Bulls Capture the Trend?

GBP Retaliates Against Major Counterparts

The downward trajectory pertaining to the British Pound has recently developed against the greenback which currently holds firm at technical support and resistance levels which may persist into the new year.

With central banks now turning more hawkish, the British Pound may be supported against major currency pairs, pushing prices to key psychological levels of historical moves.

GBP/USD Rebounds Off Channel Support

After bouncing off of long-term support, GBP/USD has rebounded from the key psychological level of 0.750 which continues to provide support for the imminent move.

With fundamentals now supporting the bullish move, the rebound off the rising channel suggests that further bullish momentum may be at play if the Sterling can sustain its bullish move.

GBP/USD Monthly Chart

Chart Prepared by Tammy Da Costa using TradingView

However, with regards to EUR/GBP, price action has fallen below trendline support with the moving average convergence/divergence (MACD) resting below the zero line. With fundamentals now being priced in, the next quarter may provide further bearish support for the imminent move.

EUR/GBP Monthly Chart

Chart Prepared by Tammy Da Costa using TradingView