GBP to USD Forecast – British Pound Breaks Above Moving Averages

GBP to USD Forecast Video for 10.02.23

British Pound vs US Dollar Technical Analysis

The British pound has rallied significantly during the trading session on Thursday, to break above the 50-Day EMA and the 200-Day EMA indicators. This is obviously a bullish sign, and it suggests that it is probably only a matter of time before we tried to go back toward the top of the overall consolidation area. With that being the case, I suspect that this is a situation where the market could go look into that 1.23 level, but I think that area continues to be a major resistance barrier.

Underneath, the 1.20 level should be support, so if we break down below there it would be a very negative turn of events. In that environment, we could drop down to the 1.1859 level, where we had bounced from previously. Anything underneath that opens up the possibility of a big move to the downside, perhaps filling the area all the way down to the 1.15 level underneath. That being said, the market is likely to continue to see a lot of noisy behavior, and we are most certainly on the precipice of something rather big.

That being said, during the Thursday session it does look like the selling of the US dollar has picked back up, so this is an interesting turn of events to say the least. Because of this, I think we’ve got to look at this as a nice short-term buying opportunity but whether or not it lasts will be determined whether or not we can get above the 1.25 level above.

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