GBP to USD Forecast – British Pound Continues to Fight

GBP to USD Forecast Video for 23.02.23

British Pound vs US Dollar Technical Analysis

The British pound has pulled back just a bit during the trading session on Wednesday, as we have seen quite a bit of volatility. Again. The 50-Day EMA has been offering resistance, and of course the 200-Day EMA also is an area where we have seen the light of pressure as well. Now that we have pulled back a bit, it’s likely that we continue to see a lot of noise between here and the 1.20 level, which is a large, round, psychologically significant figure that a lot of people will be paying attention to. Furthermore, the 1.20 level is an area where we had seen quite a bit of support previously, so I think everything comes together quite nicely for that being a bit of the support barrier.

If we were to break down below the 1.20 level, then it’s likely that we go down to the 1.1850 level. The 1.1850 level course was a swing low, and I believe that will be the bottom of the uptrend. In other words, if we break down below there, it’s likely that we drop down to the 1.15 level as it should open up a bit of a vacuum. The shooting star from last week suggests that we have a lot of resistance just above near the 1.2250 level, so if we were to break above there it opens up the possibility of a double top, which is at the 1.24 level, with resistance extending all the way to the 1.25 level. Now that we have formed a double top in that area, one would have to believe that it is going to continue to be a very important level.

If we were to break above all of that resistance, then it would continue the overall uptrend in the British pound, and as things stand right now it looks like we are essentially close to the bottom of the consolidation area. However, I would point out that the price action over the last several weeks has been somewhat soft, and therefore one would have to believe that all it would take is a kick to the market to knock it over and have a go lower.

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