GBP to USD Forecast – British Pound Cools Off

GBP to USD Forecast Video for 19.06.23

British Pound vs US Dollar Technical Analysis

The British pound has rallied slightly early during the trading session on Friday, but it does look as if it is slowing down a bit. That being said, it is still very bullish and it’s likely at this point in time that there will be buyers willing to step in and pick up value on dips. Because of this, it’s very likely that we will continue to see a lot of upward momentum given enough time, and I believe that the recent high at the 1.2650 area should offer a bit of support. Ultimately, this is a market that I think will eventually find its way toward the 1.30 level, but now it is more or less a question of how long it will take to get there.

The 50-Day EMA sits right around the 1.2450 level, so we could drop as far as that level without seeing some type of massive change in attitude. Given enough time, I fully anticipate that this is a market that will continue to see plenty of value hunting. The British pound of course is getting a boost due to inflationary pressures in the United Kingdom, as the employment situation continues to be very hot. With that being said, it’s very likely that traders will continue to price in this fact. Adding fuel to the fire is the fact that the Federal Reserve skipped raising rates this last meeting, and therefore people are speculating that perhaps we are either at the end of the hiking cycle coming out of the United States, or we are getting close to it.

With this being said, the US dollar will continue to struggle in general, with perhaps the exception of the Japanese yen as most central banks around the world are extraordinarily tight with their monetary policy, including the Bank of England. In this scenario, I think at this point it’s obvious that we are going to at least the 1.30 level. It would take a break of the 50-Day EMA at the very least to get me shorting this pair at this point. The other outlier might be if there is a sudden run to safety, that helps the dollar as well.

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