GBP to USD Forecast – British Pound Looks Heavy

GBP to USD Forecast Video for 20.06.23

British Pound vs US Dollar Technical Analysis

The British pound has shown itself to be a little bit hesitant during the trading session on Monday, as we have been overdone for the last few days. Ultimately, the market has broken out and now it’s going to more likely than not try to pull back and find support. If the market can pull back toward the 1.2650 level, that’s an area where the market could find support based upon previously resistive action.

Ultimately, this is a market that I think continues to see a lot of volatility and upward momentum, but given enough time I do think that we will have to have a bit of a pullback in order to bring in more buyers. It’s worth noting that the United States is closed for the Juneteenth holiday, so this is not a normal trading session. The 1.2650 level should offer support, but even if we were to break down below there, then the 50-Day EMA comes into the picture as well.

If we turn around and break above the candlestick from Friday, then it’s possible that we could go looking to the 1.30 level. The 1.30 level is a large, round, psychologically significant figure that I think is the target recently. All things being equal, this is a market that I think sees a lot of upward pressure given enough time, but I do recognize that there will be a significant amount of volatility on short-term charts. I have no interest in shorting this market, at least not unless something fundamentally changes with the overall economic situation. Yes, I do recognize that the global economy is going to be sluggish, and therefore the US dollar will probably attract a certain amount of attention when economic issues appear.

As things stand right now though, there’s no point in shorting this market, and I do think that it’s only a matter of time before value hunters come back into the market based on some type of supportive action. Ultimately, it’s not until we break down below the 200-Day EMA that I would be interested in shorting, which is closer to the 1.2350 region.

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