GBP to USD Forecast – British Pound Continues to Break Out

GBP to USD Forecast Video for 16.06.23

British Pound vs US Dollar Technical Analysis

The British pound has initially pulled back during the trading session on Thursday, as we continue to see a lot of volatility. However, we have turned around completely and breakout to the upside, clearing the 1.27 level by the time the Americans came on board. Ultimately, I think this is a situation where we continue to see a lot of upward momentum, and therefore I think we’ve got a situation where the market has to go to the 1.30 level now in order to fulfill the momentum building that we have seen.

Short-term pullback should be buying opportunities at this point, and although I suggested yesterday that there was a slight opportunity for a pullback to be a little bit more substantial, it is obviously passed. Ultimately, I think at this point in time it’s likely to be a situation where the 1.30 level will be targeted over the next couple of weeks, although it does not necessarily mean that we go straight up in the air. After all, the Federal Reserve did promise more rate hikes, but at the same time we have the employment situation in Great Britain causing a lot of upward pressure on inflation as well. In other words, central banks went from “racing to the bottom” to reaching higher.

The 1.2550 level underneath is now the floor in the market, but I would be the first person to admit that this is a very bullish market and it looks like we are ready to go much higher. With that being the case, we have to look at this through the prism of bullish pressure, therefore there’s no way for me to short this market anytime soon. In fact, we would have to break down below the 1.2350 level underneath, which is something that we are light years away from seeing.

Looking at the chart, it looks as if the momentum is starting to pick up yet again, and momentum is something that you have to pay close attention to in the markets. With this, I like “buying on the dip” in order to pick up cheap British pounds.

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