GBP to USD Forecast – British Pound Continues to Consolidate

GBP to USD Forecast Video for 14.02.23

British Pound vs US Dollar Technical Analysis

The British pound has gone back and forth during trading on Monday, as we continue to consolidate in the same area we had been in most of last week. The 1.20 level seems to be a bit of a magnet for price, so it will be interesting to see how this plays out. If we break down below there, then it’s very likely that we could go to the 1.1850 level. That was a swing low that makes up the bottom of a large “M pattern”, and therefore if we were to break down below that level it would kick off quite a bit of selling pressure, perhaps down to the 1.15 level.

Ultimately, this is a situation where you think you’ve got to look at this through the prism of whether or not the US dollar is strengthening against most currencies. It certainly looks as if it’s trying to in general, but Monday has been a bit of a turnaround again. With that in mind, I like the idea of looking at this through the prism of whether or not we can break down. That being said, if we do rally at this point, the 1.24 level above is a significant resistance barrier that extends to the 1.25 level.

That area I think is going to be very difficult to break above, but if we did it would obviously be a huge event. In that scenario, I could see the British pound going all the way to the 1.30 level in the intermediate term. On the other hand, breaking down sends us back to that 1.15 level, which I do think the markets trying to get to.

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