GBP to USD Forecast – British Pound Finds Support at 1.20

GBP to USD Forecast Video for 26.12.22

British Pound vs US Dollar Technical Analysis

The British pound has bounced a bit during the trading session on Friday, as the 1.20 level has offered a reasonable amount of support. It’s also worth noting that we are between the 50-Day EMA and the 200-Day EMA indicators, and therefore we could expect some type of squeeze under normal conditions. That’s the biggest problem though, it is not normal conditions that we will be seeing between Christmas and New Year’s Day. Quite frankly, most traders will be bothered putting money to work, but this also could set up an opportunity.

If we get some type of headline news that is unexpected, that can throw the markets into disarray because of the lack of liquidity. Otherwise, it’s very likely that we just bounce around in this general vicinity, setting up for the first big move of 2023. The latter of the 2 scenarios is more likely than not, but you never know when news can cross the wires. When it does during the holiday season trading, I have seen the markets jump quite wildly.

At this point, you are probably better off staying out, but if you did want to trade you have to be thinking more or less along the lines of a range bound trading system, almost like scalping the Asian session, as the range will probably be somewhat small, and it may take a while to get to whatever destination you are looking for. If we break down below the 50-Day EMA, it would continue the pullback that we had seen, and therefore it could open up the possibility of a drop all the way down to the 1.17 level. However, you can also say the same thing about breaking to the upside, because if we clear the 1.22 level, it opens up an attempt to get back to the highs.

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