GBP to USD Forecast – British Pound Continues to Trade In the Same Tight Range

GBP to USD Forecast Video for 21.04.23

British Pound vs US Dollar Technical Analysis

The British pound has initially pulled back just a bit during the trading session on Thursday, but as you can see, the market has seen a lot of noise in this area, near the 1.24 level underneath as a support level, and the 1.25 level as a significant resistance barrier. We are sitting just above the top of a huge consolidation area, and therefore a certain amount of “market memory” should be found in this area. If we can break above the candlestick from last Friday, then we could have a breakout to the upside. Whether or not that happens remains to be seen, but at this point it seems as if the market is trying to do everything it can to build up enough momentum to go higher, but we have refused to do so.

If we turn around and break down below the 1.2350 level, then the market could drop down to the 50-Day EMA. The 200-Day EMA sits just below there, so that of course could be support as well. All things being equal, this is a market that I think eventually will have to make a bigger move, and at this point it looks like there’s just so much out there in the realm of noise that it’s going to be difficult to get overly aggressive one way or the other.

Ultimately, once we do get some type of impulsive move, then we will more likely than not be able to follow it. In the short-term, it looks like it’ll be a lot of back-and-forth noise as we try to sort out where the dollar is going next. Keep in mind that the British pound has been one of the best performing currencies in the world this year, so if we do start to see the US dollar softened a bit, the British pound will probably be a major beneficiary. That being said, if we see a sudden turnaround, this might be one of the more drastic markets as far as that is concerned. Either way, we need to see an impulsive candlestick start getting involved again with any size.

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