GBP to USD Forecast – British Pound Bounces From Big Figure

GBP to USD Forecast Video for 17.02.23

British Pound vs US Dollar Technical Analysis

The British pound has bounced a bit from the 1.20 level during the trading session on Thursday, as the large, round, psychologically significant figure has attracted some movement. That being said, we cannot hang on to any type of gain during the day, so it is possible that we could break down below the 1.20 level. The 1.20 level being broken to the downside, then we could go down to the 1.1850 level. The 1.1850 level underneath is a major swing low that I think a lot of people will be paying attention to. If we were to break down below there, then it opens up a plethora of selling.

In that scenario, we will be breaking down below the “M pattern”, and therefore opening up a huge technical pattern that would send quite a bit of selling into this market. At that point, I suspect that the market is going to go down to the 1.15 level, an area that has been a major area of contention. This is an area that I think will make a nice target, and the “measured move” suggests that we could get down to that area, perhaps a little bit lower than that.

On the other hand, if we turn around and break above the top of the shooting star from Tuesday, then it opens up the possibility of testing the “double top” above that could come into the picture. That I think would be a very difficult area to get above, so with that being the case I think you have to look at this through the prism of whether or not we can break out above there. If we were to do so, that would obviously be very bullish.

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