GBP to USD Forecast – British Pound Continues to Pressure Resistance Above
GBP to USD Forecast Video for 31.03.23
British Pound vs US Dollar Technical Analysis
The British pound has initially tried to rally during the trading session on Thursday but gave back gains as it looks like we are continuing to see a lot of resistance just above, as the 1.24 level has formed a bit of a double top recently. This area extends all the way to the 1.25 level as far as resistance is concerned, so I would think at this point in time you probably have a situation where we are more likely to roll over than anything else.
We initially shot higher, and it looked like we were ready to try to take out the overhead resistance, but that was turned around quite quickly as the Americans came on board. At this point, if we were to drop down below the 1.23 level, it could open up even further selling, perhaps ending the British pound back down to the 50-Day EMA or even the 200-Day EMA, 2 indicators that just crossed near the 1.21 level. Anything below that then opens up the possibility of a move down to the 1.20 level, and then the 1.1850 level after that.
On the upside, if we could take out the 1.25 level it would obviously be very bullish for the British pound. In that scenario, we would probably see the British pound looking to the 1.2750 level, followed by the 1.29 level. It would also more likely than not be attached to the US dollar falling against multiple other major currencies around the world. In other words, it’s still all about the dollar and the Federal Reserve. Ultimately, a lot of traders out there still hope and quite frankly need the Federal Reserve to come in and add more liquidity. This is essentially what the market is banking on, even though it’s a very wrong way to look at what is going on.
When I look at the chart, it’s very easy to see a situation where we could stay in a range bound market between the 1.24 level above and the 1.1850 level underneath. That’s essentially what we’ve been doing for 5 months, and there’s nothing on this chart that suggests we are ready to break out of that overall trading range.
For a look at all of today’s economic events, check out our economic calendar.