GBP to USD Forecast – British Pound Looking to Consolidate

GBP to USD Forecast Video for 07.04.23

British Pound vs US Dollar Technical Analysis

The British pound has found itself a bit stagnant during the trading session on Thursday, as we are sitting just below the crucial 1.25 level, but at the same time sitting above the crucial 1.24 level. In other words, we are essentially stuck between 2 major levels and therefore we have to pay close attention. More likely than not, what we need to do is let the market decide whether or not it is going to continue to consolidate, or if it is going to make a move from here.

The most obvious move would be to break significantly above the 1.25 level, kicking off the next leg higher. This would be a simple continuation of what we had seen previously, opening up the possibility of a move all the way to the 1.2750 level. However, if the market turns around and breaks below the 1.24 level on a daily close, at that point we may see this market try to head back towards a couple of support levels underneath.

The 50-Day EMA sits right around the 1.20 level, with the 200 day EMA sitting just below there. The British pound has been one of the best performing currencies this year, and that may continue to be the case. Because of this, if the market was to break down through the 1.24 level, it would more likely than not be in concert with US dollar strength in general. In other words, even if you are trading this pair, it might end up being a great indicator of where the greenback is going in general as the British pound has been so strong.

To the upside, if we were to break out, the US dollar would probably continue to see a lot of negativity going forward. The market should continue to be very choppy, but keep in mind that Friday is Good Friday, and of course Monday has half the European banks closed, so the next couple of days will have a serious lack of liquidity at times, so I would not put too much money in this market during this time, but it could be used as a bit of an indicator as to where we are going for the next couple of weeks.

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