GBP to USD Forecast – British Pound Attempts Stabilization

GBP to USD Forecast Video for 15.05.23

British Pound vs US Dollar Technical Analysis

The British pound has been slightly positive during the trading session on Friday, trying to stabilize after the nasty selloff on Thursday. That being said, even though the Thursday candlestick was rather negative, it did not change the trend, nor do I think that we are ready to make some attempt to do so. Rather, buyers will continue to come in and pick up dips as potential value; therefore, this remains the same as it has been.

It’s probably worth mentioning that the 50-Day EMA sits near the 1.24 level and is rising. It will eventually enter the picture and offer technical support on a pullback or when it reaches the price. However, it’s probably worth noting that the 1.27 area offered some resistance the last time we got close to it, so it will likely do it again if the price gets to that handle. However, that doesn’t necessarily mean that it will not be able to break above there.

Great Britain has much more inflation than a lot of other nations right now, and therefore the Bank of England will possibly remain tighter for longer than many other ones. The British pound has been one of the better-performing currencies of the year, and even though Thursday was a very nasty candlestick, one day doesn’t necessarily change the trend in a currency pair without some extraordinarily disruptive news attached to it.

With this in mind, I believe this pair remains “buy on the dips,” at least as far as I can see. It is not until we break down below the 1.2350 level that you question whether the uptrend is running out of steam. Even then, some areas underneath it will almost certainly attract buyers. If you are looking to buy the US dollar, you probably will have better luck against other currencies as the British pound itself has been such a juggernaut for most of the last several months. If we can break above the 1.27 level, it’s possible that the British pound could go as high as 1.30 over the next several weeks. That said, it will probably be choppy behavior on the way up.

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