GBP to USD Forecast – British Pound Fights Back Against Selling Pressure

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Updated: Apr 3, 2023, 13:14 UTC

The British pound had a very negative open to the week but has turned right back around to show signs of life again. By doing so, it looks as if we are going to continue to see a very erratic market.

GBP to USD Forecast Video for 04.04.23

British Pound vs US Dollar Technical Analysis

The British pound initially fell during the trading session on Monday but turned around to show signs of life yet again. By doing so, the market looks as if it is going to continue to threaten the major resistance barrier above, extending from 1.24 to the 1.15 level. If we were to break above the 1.15 level, then it opens up a move to much higher pricing.

It’ll be interesting to see what we have ahead of us, as there is most certainly going to be a major fight. The market will continue to be very noisy, and therefore I think you have to be cautious with getting overly exposed to it. That being said, I believe that it is still a situation where we have to think about the overall risk appetite of the world, and whether or not it can continue to look beyond all of the issues, or a if we will only focus on the idea of potential loose monetary policy coming out of the United States. At this point, the market looks as if it is demanding that the Federal Reserve cut rates, but whether or not they do might be a completely different question.

Keep in mind that the markets will continue to see a lot of headlines out there that could cause some issues, so obviously there will be a potential selloff, especially as we are at the top of an overall range. Nonetheless, if we do break above the 1.25 level, then this market could really take off. If we do turn around and break down though, the bottom of the overall range, which is down to the 1.1850 level, could be a target. The market will continue to see a lot of volatility, but if we were to take out the 1.25 level then I think the initial target could be 1.2750. On the other hand, if we were to turn around and break down the 1.1850 level, that would be a major breach of support that could send this market all the way back down to the 1.15 level.

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About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.