GBP to USD Forecast – British Pound Continues to Struggle With Upward Momentum

GBP to USD Forecast Video for 09.01.23

British Pound vs US Dollar Technical Analysis

The British pound went back and forth during the trading session on Friday, as we continue to see a lot of questions asked about the labor market. Looking at this chart, it seems as if the 50-Day EMA and the 1.20 level above could offer resistance, so pay close attention to those areas. On the other hand, if we do break above there then you have the 200-Day EMA near the 1.2150 level. Breaking above that level then opens up the possibility of the 1.22 level.

That being said, it does look as if the British pound is struggling overall, so I fully anticipate that we will continue to see negativity going forward. I don’t have any interest in trying to get too cute here, but for me it’s obvious that the pullback is more likely the case than anything else. I think that we could probably get down to the 1.16 level, maybe even the 1.15 level. That’s an area where we had seen a lot of resistance previously, so it does make a certain amount of sense that we would see “market memory” come into play there and make it a target.

Regardless, a lot of this is going to come down to interest rates in the United States, because quite frankly, the United Kingdom is a bit of a mess. I find it kind of interesting that no matter what the Federal Reserve does, traders don’t seem to be willing to accept the fact that they might remain tight for much longer than originally anticipated. Because of this, the US dollar continues to cause chaos.

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