GBP to USD Forecast – British Pound Bounces From the 50-Day EMA

GBP to USD Forecast Video for 22.05.23

British Pound vs US Dollar Technical Analysis

The British pound has rallied from the 50-Day EMA during the trading session on Friday, as we continue to see a lot of noisy behavior. By turning around the way it has, it suggests that the market is going to try to stay in the same range it had been in, using the 1.2350 level underneath as potential support and a 1.2550 level above as potential resistance. With this being the case, I think you get a situation where market participants will continue to see a lot of hesitation in both directions, so with that in mind, it’s very likely that we’ve got a market that does favor the upside overall, due to the fact that the British pound is so strong, but it’s not as if it is suddenly going to take off to the upside without hesitation.

The 1.27 level above offered a significant amount of resistance the last time we got there, so if we can clear that area, then it’s very possible that we could make a move toward the 1.30 level eventually. On the downside, the 1.2350 level is an area that if we break down below it, then the 200-Day EMA could be your next support level. The 200-Day EMA is obviously an indicator that a lot of people pay close attention to, and therefore if we were to break down below there, then the market could really start to fall apart, perhaps reaching down to the 1.1850 level underneath. The 1.1850 level is an area that will cause a lot of support, and therefore I think a lot of people will be paying close attention to it.

On the other hand, we could find ourselves in a bit of a range for a while, just due to the fact that nobody really knows what to do with their money. There are so many moving pieces in the global economy right now that it seems as if the market participants are a bit hesitant to put a ton of money into the market, selling bigger moves are probably going to be a bit hard to come by.

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