GBP to USD Forecast – British Pound Has a Rough Start to the Week
GBP to USD Forecast Video for 06.06.23
British Pound vs US Dollar Technical Analysis
The British pound has fallen hard during the trading session on Monday, as we have seen the market selloff from the 1.2550 level above yet again. Ultimately, this is a market that looks as if it is going to continue to struggle, but with the 200-Day EMA underneath offering a potential target and of course support, it’ll be interesting to see how that plays out.
Ultimately, this is a market that I think continues to see a lot of noise in this general vicinity, as we have seen the 1.2350 level offer support, while the 1.2550 level has been resistance. Ultimately, this is an area where we have seen a lot of noisy behavior and therefore, I think it’s likely that we will continue to see choppiness. If we do break down below the 200-Day EMA, then it’s possible that the market could drop down to the 1.1850 level, an area that we have seen a lot of support at previously, and of course it’s very likely that we continue to see a lot of interest in that area. If we were to break down below there, obviously would open up the trapdoors and we could go much lower.
In general, this is a market that I think probably finds a little bit of support underneath, and therefore it could be very noisy, and therefore you need to be very cautious with getting too aggressive at this point. Ultimately, this is a market that I think will probably move back and forth along with risk appetite, which of course is going to be all over the place. With this, I would be very cautious but I also recognize that it looks like the US dollar is starting to pick up a little bit of steam.
On the other hand, if the market were to turn around and break above the recent high near the 1.2680 level, then we could go to the 1.30 level above, as it is a large, round, psychologically significant figure, and an area where a lot of people will be paying close attention to, and therefore I think it could cause a lot of noise.
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