GBP to USD Forecast – British Pound Continues to Trade in The Same Range

GBP to USD Forecast Video for 27.04.23

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit during the early hours on Wednesday, as we continue to see this market bounce around in the same 100-point range. The 1.24 level has been supported, while the 1.25 level has been resistant. In this vicinity, it seems as if we will have a lot of noisy behavior. That being said, the market is likely to continue being very noisy, but as we get toward the end of the week, we may get a move in one direction or the other.

If we do break out above the high from last week, it could have the market looking to get to the 1.26 level and then perhaps to the 1.2750 level. On the other hand, if the market breaks out below the 1.2350 level, we could go looking toward the 50-Day EMA, which is closer to the 1.23 level. Either way, the market has a short-term range that it is being squeezed, but it also has a couple of levels that you should be paying attention to, because it could lead to the next move.

As things stand right now, the British pound remains one of the better-performing currencies against the US dollar, and of course, speaking of the US dollar, many traders are out there trying to figure out what the Federal Reserve is going on to do next. At this point, a lot of people will be looking at it through the prism of whether or not they are going to tighten monetary policy, but it does seem to be a situation where we continue to see a lot of noisy behavior and a lot of speculation as to what the Fed is going to do, because although they continue to see a lot of questions as to whether or not the Fed actually means what it says. After all, the Federal Reserve continues to see the need to stay tight, and the market simply does not believe them. Sooner or later, this will have to be resolved, and it will show itself in this pair as well as many other currency pairs around the world.

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