GBP to USD Forecast – British Pound Continues to Form Potential Topping Pattern

GBP to USD Forecast Video for 24.04.23

British Pound vs US Dollar Technical Analysis

The British pound has broken lower during the trading session on Friday, as we have dropped below the 1.24 level early during the day. That being said, there is still a significant amount of support underneath, near the 1.2350 level. If we were to break down below there, then things could change. Otherwise, is very likely that we could go back and forth during the next several sessions, as we try to figure out what happens next. After all, we had recently broken above a significant resistance level near the 1.24 level, but it’s also worth noting that this resistance level is roughly 100 pips high. After all, the 1.25 level has already shown itself to be important as well.

Alternatively, if we turn around and break down below the 1.2350 level, it’s likely that we could go down to the 50-Day EMA, which is closer to the 1.23 level. Below there, then we could open up the possibility of a move down to the 200-Day EMA. In that environment, I would anticipate we could see a little bit of momentum to the downside. This would also more likely than not be a function of the US dollar strengthening across the board, as the British pound has been one of the big winners this year.

Alternatively, if we do break out to the upside, and take out the Friday candlestick of last week, then it’s possible that we could go looking to the 1.2750 level. The 1.2750 level being broken to the upside opens up the possibility of a much bigger move to the 1.30 level. Furthermore, I think at that point it would become more of a “buy-and-hold” type of situation, possibly opening up a longer-term move. That being said, it’s going to take a certain amount of a huge amount of effort, opening up the possibility of a much bigger move around the Forex world. All things being equal, it does look like we are forming a little bit of a topping pattern, so I do think that we are more likely than not going to see a little bit of softness in the short term.

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