GBP to USD Forecast – British Pound Bounces From Support

GBP to USD Forecast Video for 06.03.23

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit during the trading session on Friday, as we continue to see the area just above the 1.19 handle offers little bit of support. However, it’s worth noting that the market has drifted lower for a while, and therefore it’s likely that we could continue to see sellers come in in a relatively aggressive manner.

The 50-Day EMA sits just below the 1.21 level, while the 200-Day EMA sits just above there. Ultimately, I think that the market is trying to figure out what it wants to do for the longer term, but we have been drifting a little bit lower, and therefore it’s likely that we will continue to see trouble. The 1.19 level underneath is a large, round, psychologically significant figure, but I think it extends down to the 1.1850 level where we had seen a lot of support. If we were to break down below there, the market is likely to go down to the 1.15 level after that.

If we were to turn around and take out the 1.22 level, the market could go much higher, perhaps reaching the 1.24 level. The 1.24 level is where we had seen a little bit of a double top, so therefore it does make a lot of sense that we would see a massive amount of selling pressure. In order to break above there and the 1.25 level, it would take a massive amount of momentum, something that I just don’t think we have any time soon without some type of major shift in fundamental analysis, or something that makes people more aggressive as far as the pound is concerned.

With all of the uncertainty out there, it’s difficult to imagine a situation where the US dollar gets crushed, so I do think that it is probably a situation where you are fading rallies going forward, with all of the geopolitical, economic, and volatility risks out there. That being said, we have recently seen the Bank of England suggest that the interest-rate situation in that country may be stronger, but the Federal Reserve is looking at “tighter for longer” as well.

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