GBP to USD Forecast – British Pound Gives Up Early Gains for Wednesday Session

GBP to USD Forecast Video for 13.04.23

British Pound vs US Dollar Technical Analysis

The British pound has initially rallied during the trading session on Wednesday but gave back gains as the Americans came on board. Ultimately, this is a situation where we see a lot of resistance between the 1.24 level in the 1.25 level. With that being the case, it does make sense that we would continue to see a short-term “fade the rally” type of attitude. Furthermore, we have to worry about whether or not the global economy is slowing down, which typically helps the US dollar.

The 50-Day EMA is sitting just above the 1.22 level, an area that has caused a little bit of noise in the past. Just below there, we have the 200-Day EMA, so therefore there are a couple of major moving averages below that could be a bit of a target. This of course would need to see the US dollar strength in general, which is a very real possibility considering how many economic concerns there are at the moment.

On the other hand, if we do take off to the upside, and close above 1.25 on a daily close, then I might be interested in buying this market, perhaps opening up the possibility of a move to the 1.2750 level. This is an area that has been a bit noisy in the past, so it does make a certain amount of sense that we would see that area be like a magnet for price. That being said, I think the one thing that you need to pay close attention to is going to be risk appetite, and therefore you can look to other markets to get an idea as to how traders are “feeling” during the trading session. I do believe that the US dollar will continue to see inflows due to the fact that it is where people run toward when they need safety and let’s face it, there are plenty of reasons to look for safety in this environment as it looks like we are heading into a global slowdown, and of course there are still issues with credit out there that demand US dollars.

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