GBP to USD Forecast – British Pound Bounces From Support Level

GBP to USD Forecast Video for 18.04.23

British Pound vs US Dollar Technical Analysis

The British pound has pulled back just a bit to kick off the trading session on Monday, but then turned around to show signs of life again. It looks as if the 1.24 level is going to try and offer a little bit of support, as we are going back and forth between the 1.24 level and the 1.25 level above. The massive candlestick on Friday of course looked rather ugly, but it does seem as if we are trying to pay attention to “market memory” in his general vicinity.

All things being equal, I do think this is a market that probably needs to make a bigger move sooner or later. If we break down below the most recent swing low, near the 1.2350 level, then we could see this market drift down toward the 200-Day EMA, which sits just below the 1.22 level. Ultimately, I think this is a situation where we continue to see a lot of volatility, so it is very difficult to hang on to trades that are large. Because of this, it is going to continue to be noisy and therefore I think you need to be very cautious with your position sizing. Nonetheless, it does look like there are still plenty of people willing to get long this market, so even if we do break down, I think this is a situation where you will probably have a lot of choppiness on the way down.

If we were to break above the highs of the Friday session, then it opens up the possibility of a move to the 1.2750 level. Anything above there then opens up the possibility of a much bigger move, perhaps allowing the British pound to become more of a “buy-and-hold” asset. It has been one of the better performing currencies in the world this year, so it would make a certain amount of sense that it could happen. However, be very cautious with your position size as volatility continues to be a major issue. Nonetheless, it certainly has a lot of upward momentum, so I think that given enough time, the buyers return.

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