GBP to USD Forecast – British Pound Continues to Struggle

GBP to USD Forecast Video for 13.02.23

British Pound vs US Dollar Technical Analysis

The British pound has fallen rather slightly during the trading session on Friday, as we continue to see the moving averages cause a little bit of a headache. The 50-Day EMA in the 200-Day EMA sit right in the same neighborhood that we are at currently, and look as if they are going to put up a fight. The shooting star from the Thursday session certainly shows that there is a lot of hesitation above, so I think that given enough time we will probably have to sort this out. If we can break above the shooting star, then it’s likely that we can go towards the top of the major selloff last week, putting the British pound closer to the 1.23 level.

On the other hand, if we break down a bit it’s likely that the 1.20 level will come into the picture, showing signs of support. Underneath there, then the 1.18 level gets targeted, which I think is the last vestiges of an uptrend. When you look at the chart, it’s difficult not to see a major “M pattern”, as well as a double top near the 1.2450 level.

The noisy behavior that we continue to see is very indicative of how the overall Forex markets are behaving, so this should not be a huge surprise at this point. If we do break down, I expect there to be a huge “air pocket” down to the 1.15 level, which had previously been rather significant resistance. Regardless, the US dollar looks as if it is starting to flex his muscles again, signaling that there might be trouble out there.

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