GBP to USD Forecast – British Pound Gives Up Early Gains

GBP to USD Forecast Video for 17.03.23

British Pound vs US Dollar Technical Analysis

The British pound has initially tried to rally during the trading session on Thursday but gave back quite a bit of the gains to show signs of weakness yet again. The 1.20 level underneath continues to be an area of interest, as it is a large, round, psychologically significant figure and an area where we will continue to see a bit of a fight. However, if we break down below this level, then it’s likely that we could send this market down to the 1.1850 level.

Rallies at this point in time had to be looked at with suspicion, as there seems to be a lot of concern out there when it comes to the financial banking system, and quite frankly global growth in general. With this being the case, it’s very likely that we will see the US dollar pick up a lot of interest, if for no other reason than to use it as a safety asset.

Furthermore, it’s very likely that we are going to continue to see a lot of momentum in the bond market as people rush toward safety. The market tried to rally during the session on Thursday but gave up those gains at the psychologically and structurally important 200-Day EMA, so that a course is something worth paying attention to.

Ultimately, I do think that there is going to be a lot of demand for US dollars and therefore I think it’s probably only a matter of time before we see the pair start to drop again. If we can break down below the 1.1850 level, then it’s very possible that we could go down to the 1.15 level, which is an area that has been important multiple times in the past, and also has a lot of psychological importance as well.

If we do somehow find a lot of momentum to the upside, then we could see a move to the 1.23 level, an area we had sold off from previously. Above there, we have the double top the form to 1.24, which of course is a major area of resistance that I do not expect to see overtaken any time soon.

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