GBP to USD Forecast – British Pound Continues to Consolidate
GBP to USD Forecast Video for 02.02.23
British Pound vs US Dollar Technical Analysis
The British pound has rallied just a bit during the trading session on Wednesday as we wait for the FOMC statement. At this point, we are consolidating to see whether or not we can build up enough momentum on the breakout. The 1.25 level is a major area as far as psychology is concerned, as well as structure. If we can break above there, then the British pound will probably soar. On the other hand, if we turn around and take out the 1.2250 level, then I think we can look into the 1.20 level.
The British pound has been a bit of a laggard for a while, and therefore it’s not a huge surprise to see how this has played out. Ultimately, this is a market that has been very much in consolidation, and I think that continues to be the case. After all, the United Kingdom has a lot of issues when it comes to the economy itself, so if the Federal Reserve does in fact end up being more aggressive for longer, that will weigh upon the British pound, at least in terms of US dollars.
The 50-Day EMA is crossing the 200-Day EMA currently, kicking off what looks to be a bit of a golden cross. Longer term traders do like that, so it will be interesting to see how this plays out. At the same time, we could be in the midst of forming a double top, so that’s something worth paying attention to as well. This is a very choppy and noisy market at the moment, but it’s likely that by the end of the week we could get some type of clarity.
For a look at all of today’s economic events, check out our economic calendar.