Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
British Pound Forecast – GBPUSD Struggles Continue as US CPI Release Nears

British Pound Forecast – GBPUSD Struggles Continue as US CPI Release Nears

Nick Cawley, Senior Strategist


What's on this page

GBP/USD Price, Chart, and Analysis

  • The latest pullback is finding little traction.
  • US headline CPI rumored with an ‘8%’ handle.
GBP Forecast
GBP Forecast
Recommended by Nick Cawley
Get Your Free GBP Forecast
Get My Guide

Cable is finding life tough at the moment with the pair stuck in a pronounced multi-month downwards trend. This week’s fresh nadir continued a series of lower lows, while the weakness of any rebound over the past few months has kept the sequence of lower highs intact. Cable needs a period of consolidation otherwise fresh lows, and an attempt at 1.3000 looks increasingly likely.

British Pound Forecast (GBPUSD) Sterling Helpless in The Face of US Dollar Dominance

Yesterday’s US dollar sell-off may be reversed later today when we get the latest US inflation report with market talk that the headline figure may be in excess of 8%. White House press secretary Jen Psaki yesterday warned of higher headline inflation with last month’s print of 7.5% expected to be broken with ease. US inflation currently stands at a 40-year high.

Trade Smarter - Sign up for the DailyFX Newsletter

Receive timely and compelling market commentary from the DailyFX team

Subscribe to Newsletter

The daily GBPUSD chart shows a cluster of prior lows pierced earlier this week before a bout of US dollar weakness yesterday allowed cable to regain 1.3100. Today’s partial fade of that move does not instil much confidence in GBPUSD, especially with the US inflation release on tap. Cable has erased its extremely oversold reading (CCI) but needs a period of consolidation if it is to move higher. Monthly UK GDP data is released tomorrow and a strong reading may well help to underpin cable at current levels ahead of next week’s Bank of England MPC decision.

For all market-moving economic data and events, refer to the DailyFX calendar

GBP/USD Daily Price Chart – March 10, 2022

Retail trader data show 72.64% of traders are net-long with the ratio of traders long to short at 2.66 to 1. The number of traders net-long is 1.42% lower than yesterday and 26.04% higher from last week, while the number of traders net-short is 1.29% higher than yesterday and 29.25% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD prices may continue to fall. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed GBP/USD trading bias.

GBP/USD Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 6% -3% 3%
Weekly 17% -8% 9%
What does it mean for price action?
Get My Guide

What is your view on GBP/USD – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.