In March 2020, $GBPUSD went as low as 1.14144. After this low, the bulls took over and a rally pushed the price to 1.42614, the highest price between 2018 and now. $GBPUSD opened at the beginning of the year 2022 at 1.35313. Since the beginning of the year, the price has appreciated from the opening price to 1.37512 which is currently the year’s high. The bulls however could not maintain this momentum as the bears hijacked the trend and pushed the pair to a new support level at 1.30020.
This new support level is lower than the opening price of the year which means GBP has lost all it gained this year against the USD. There are indications of a bullish run in the next couple of weeks which signifies that GBP will appreciate against the USD. On the daily time frame, RSI has indicated that the price is oversold. We forecast that the price will rise to 1.34298.
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