GBP to USD Forecast – British Pound Pulls Back
GBP to USD Forecast Video for 30.11.22
British Pound vs US Dollar Technical Analysis
The British pound has pulled back after initially rallying during the day on Tuesday, as we continue to see the markets try to figure out what the Federal Reserve is going to do next. After all, the Federal Reserve drives what happens with the dollar, and a lot of people have speculated that they are at least going to slow down, if not even pivot. Ultimately, they have to decide on how many basis points raise rates in December, with most money betting on 50. That being said, it’s a future direction that a lot of people are looking at plus there are a lot of other things and people are starting to pay close attention to.
The British pound of course has an economy behind it that is heading into a two-year recession according to the Bank of England, which does not exactly scream potential strength. Ultimately, if we break down below the bottom of the candlestick for the last couple of days, it’s very likely that we go down to the 1.18 level. Breaking down below the 1.18 level opens up the possibility of a retest of the 50-Day EMA. After that, then we are starting to talk about the 1.15 level. We are clearly in an area that a lot of people will be paying attention to, not only due to the 200-Day EMA but the 50% Fibonacci ratio.
The alternate scenario is that we take out the 1.22 level on a daily close, allowing the market to break through a significant barrier. If that were to happen, it’s likely that the British pound will go to the 1.25 level.
For a look at all of today’s economic events, check out our economic calendar.