GBP to USD Forecast – British Pound Gaps Higher to Kick Off the Week

GBP to USD Forecast Video for 14.03.23

British Pound vs US Dollar Technical Analysis

The British pound has gapped to the upside during the trading session on Monday, and then drove higher. The market even pierced the 200-Day EMA, before giving back some of the momentum. The 1.2150 level has offered some resistance, just as we have seen over the last couple of weeks. Ultimately, the market looks as if it is going to be negative still, due to the fact that the US dollar continues to see positive pressure due to the fact that the Federal Reserve is likely to continue to be very tight with monetary policy, while there are a lot of questions when it comes to how long they will continue to see the need to stay tight with monetary policy.

The candlestick does look like it is starting to form a bit of a shooting star, with the 200-Day EMA offering a bit of a barrier. Ultimately, this is a market that looks like it is ready to continue drifting lower, perhaps reaching down to the 1.1850 level. Breaking down below that level will then possibly open up a move to the downside, leading to a huge selling move lower. If we see the market break down below there, then it’s possible that the British pound could go all the way down to the 1.15 handle. This is an area where we had previously seen a lot of resistance. So-called “market memory” could come back into the picture in that area, and therefore is likely that it will be difficult to break down through there.

Alternatively, if we were to turn around and break above the 1.2150 level, then it’s possible that we could go to the 1.23 level. Above there, then we have the 1.24 level, an area that had previously been a significant amount of resistance before, as we ended up forming a massive double top in that region. In fact, I think getting above there and then taking on the 1.25 level is a bit of a pipe dream at this point in time, therefore I think we’ve got a situation where you are still looking to fade rallies as they occur in this pair.

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