GBP to USD Forecast – British Pound Pauses

GBP to USD Forecast Video for 15.03.23

British Pound vs US Dollar Technical Analysis

The British pound has drifted a little bit lower during the trading session on Tuesday as we are finally taking a bit of a breather after the massive shot higher. That being said, we are also sitting near the 1.2150 level, an area that we have seen a lot of resistance previously. The move to this area of course has been far too overdone, so a little bit of a pullback would make quite a bit of sense. The 200-Day EMA sits just below, so that of course does offer a little bit of interest.

Keep in mind that as the bailout of Silicon Valley Bank occurred, traders started to bank on the idea that the Federal Reserve is going to come out and start loosening monetary policy sooner than expected. However, they are not taking the inflation numbers into account.

If we do rally from here, then we could go to the top of the previous push higher, meaning that the 1.23 level would be your ceiling. Anything above that then would start to threaten the double top the form that the 1.24 level. This market certainly has a lot of negativity and resistance above, so I do think that it is probably only a matter of time before you get some type of exhaustion candle that you can start feeding.

Underneath, I believe that the 1.20 level underneath would be a large, round, psychologically significant figure people will be paying a lot of attention to, but I think ultimately it would get broken through, as we have sliced through the couple of times already. In that scenario, the market almost certainly goes down to the 1.1850 level, which is where we had bounced from a few days back. Anything below there than opens up the possibility of going down to the 1.15 level, another large, round, psychologically significant figure, especially as we previously had seen so much in the way of resistance in that area.

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