GBP to USD Forecast – British Pound Gives Up Gains After Jobs Number

GBP to USD Forecast Video for 05.12.22

British Pound vs US Dollar Technical Analysis

The British pound has initially tried to rally during the trading session on Friday, but the jobs number came out hotter than anticipated, as well as average earnings, so the US dollar should continue to be in a state of recovery. Ultimately, this is a market that has seen the British pound break above the 200-Day EMA, but at this point we have to ask questions of whether or not the market got ahead of itself. At this point, with the jobs number coming out hotter, this suggests that Jerome Powell and company have plenty of work to do going forward, thereby tightening monetary policy and the United States.

If we break down below the 1.20 level, that could signal that the rally is over, as we could drop down to the 1.18 level. On the other hand, if we break above the highs, then it’s possible that we could see this market looking to break out and go to the 1.25 level. Quite frankly, we have seen so much in the way of upward momentum, that it looks like the market got far too ahead of itself.

At this point, I think we may see a continuation of the overall downturn, but we will have to see how this plays out over the next couple of days. The British pound has a whole host of issues, not the least of which would be the fact that the British economy is going to go into recession. However, hope burns eternal and people will find reasons to sell the US dollar again given enough time. That being said, pay close attention to the next 2 days.

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