GBP to USD Forecast – British Pound Continues to Struggle With the Same Barrier

GBP to USD Forecast Video for 20.01.23

British Pound vs US Dollar Technical Analysis

The British pound has done very little during the trading session on Thursday as the markets continue to see a lot of noisy behavior. The British pound has been helped by inflation numbers in the last couple of days, but you can still see that there is a clear area of resistance that it struggles with near the 1.25 region. In fact, it’s probably a situation where we will continue to see a lot of questions asked about this area, and whether or not we are in the process of forming a “double top.”

The only reason I say this is that most of the US dollar denominated pairs look very similar at the moment, and we are seeing a little bit of pushback from the greenback. After all, everybody and their mother out there believes that the US dollar is toast, which generally tells me we are getting close to a turnaround again. However, if we can get a daily close that clears the 1.25 level significantly, that should send this market higher. The 200-Day EMA sits at roughly 1.2135 and is rising, so that should be thought of as a potential dynamic support level.

If we were to turn around and take out the 1.25 level, then I think the next logical space for the market to go looking to would be the 1.2750 level, followed by the 1.30 level, both of which have been attractive to traders in the past. At this juncture, it’s a little early to call for anything, but it certainly looks like we’ve got some decisions to make rather soon.

For a look at all of today’s economic events, check out our economic calendar.