GBP to USD Forecast – British Pound Continues to Consolidate

GBP to USD Forecast Video for 26.04.23

British Pound vs US Dollar Technical Analysis

The British pound has initially tried to rally during the trading session on Tuesday, breaking above the 1.25 level. However, we have pulled back since then and started to fall back toward the 1.24 level, the bottom of the overall range that we have been in for a while. Ultimately, this is a market that I think continues to see a lot of volatility and choppiness, as we are testing such a major area.

The British pound has been very strong as of late, so at the very least it does make a certain amount of sense that we would have to work off some of the froth, and that might be exactly what’s happening. If we can break above the most recent high, then it’s possible that we could go to the 1.2650 level above. Underneath, if we were to break down below the 1.2350 level, then the market could drop down to the 50-Day EMA. In that scenario, we could be looking at a return to the previous consolidation area, but right now I think that’s probably a bit of a stretch.

When I look at this chart, I recognize that we have a lot of noise out there that could come into play, and therefore I think you will continue to see a lot of choppy behavior. Regardless, this is a scenario where we have to look at this through the prism of whether or not we have any real opportunity to find value on some type of dip in order to buy, or if we get some type of bigger selloff.

Ultimately, this is a market that I think continues to be very noisy and you have to look at it through that prism. We are trying to figure out what risk appetite is going to be at the moment, and that has a major influence on what happens with the US dollar, and then by extension this currency pair. With that being the case, you have to look at this as a market that you need to be very cautious with, but we have been in an uptrend for a while, so the buyers certainly have a lot to say.

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