GBP to USD Forecast – British Pound Continues to Consolidate Near Big Figure

GBP to USD Forecast Video for 07.03.23

British Pound vs US Dollar Technical Analysis

The British pound has gone back and forth during the course of the trading session on Monday, as it looks like it is still trying to figure out what to do with itself. Because of this, the market will be very noisy, but ultimately it looks as if we are going to have to make a bigger decision. Until we get some kind of impulsive candlestick, it’s a bit difficult to get overly aggressive in this pair. It seems as if the 1.20 level is going to continue to be a magnet for the price, therefore you need to pay close attention to how the market continues to react to this area. So far, it looks as if it’s ready to grind back and forth but if you look at the chart a little closer, you can recognize that there have been a series of lower highs along the way.

Underneath, the 1.1925 level has offered a bit of support, and I think that probably extends down to the 1.1850 area where we had seen a little bit of support previously. Breaking down that level will then kick off the major leg lower, perhaps opening up a move down to the 1.15 level. The 1.15 level of course is very likely to continue to be important due to the fact that it is a large, round, psychologically significant figure, so with that in mind, I think it’s probably a nice target.

However, if we were to turn around and break above the 1.21 level, then it’s possible that we could go to the 1.24 level above, but that double top I think would be difficult to break above anytime soon and I think it extends all the way to the 1.25 level as well. In other words, there’s a lot of noise out there that is going to continue to be a major issue, so therefore I think you’ve got a situation where you have to look at this more or less from a “fade the rally” type of plan, but you should also perhaps look at this as a short-term market more than anything else at the moment.

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