GBP to USD Forecast – British Pound Plunges Towards Big Figure Again

GBP to USD Forecast Video for 16.02.23

British Pound vs US Dollar Technical Analysis

The British pound has found itself crashing into the 1.20 level, an area that obviously has a lot of psychology attached to it. At this point, I think the market is likely to continue to see a lot of downward pressure, mainly due to the fact that the US dollar itself is so strong. The Federal Reserve is stuck with a very hot economy, and therefore it’s probably going to have to do everything it can to slow down the economy. Whether or not that means higher interest rates remains to be seen, but one would think that it makes the US dollar much more attractive.

Contrast that with the United Kingdom, which has a whole host of issues, and it does make a certain amount of sense that we see this market fall hard. However, there is a lot of support underneath the 1.20 level near the 1.1850 level, which is the swing low. If we break down below there, then it opens up the possibility of a breakdown of a larger “M pattern”, which obviously is a very negative turn of events.

Breaking down below there opens up the possibility of the 1.15 level, which is a large, round, psychologically significant figure and an area that previously had been quite a bit of resistance. A bit of “market memory” makes quite a bit of sense in this area, so I look at that through the prism of a potential trade target. Anything below there would be disastrous for the British pound.

The alternate scenario is that we break above the shooting star from the session on Wednesday, which opens up a move toward the 1.25 level and quite frankly that is possible considering how volatile things have been.

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