GBP to USD Forecast – British Pound Continues to Look Threatened

GBP to USD Forecast Video for 27.02.23

British Pound vs US Dollar Technical Analysis

The British pound has found itself on the back but yet again, as we continue to see a lot of negativity out there. With that being said, it is more likely than not going to be a situation where rallies continue to get faded, as the US dollar is continuing to attract a lot of attention in general. It looks like we are forming a massive “M pattern” which of course is negative. The 1.1850 level is an area that has offered support in the past, so if we were to break down below there, then it’s likely that we could go down to the 1.15 level. With that being said, I do think it is probably only a matter of time before the pound gets absolutely hammered.

Rallies at this point in time will continue to be selling opportunities, with the 50-Day EMA hanging around the 1.21 level, offering a significant amount of resistance, especially as we also have the 200-Day EMA just above there. From a technical analysis standpoint, it looks like almost all currencies denominated in the US dollar right now, as we have seen the Australian dollar breakdown, the British pound breakdown, and the Euro breakdown.

Furthermore, if the world is headed into a major recession, it does make a lot of sense of the greenback will continue to see buyers jumping into it as it offers a bit of a safety valve for traders around the world as they are trying to protect well. With this being the case, it’s likely that we see a lot of choppy and negative behavior.

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