GBP to USD Forecast – British Pound Pulls Back From Crucial 1.25 Level

GBP to USD Forecast Video for 17.04.23

British Pound vs US Dollar Technical Analysis

The British pound had initially tried to rally a bit during the trading session on Friday but gave back the gains almost immediately after the retail sales number came out of the United States much weaker than anticipated, therefore it looks like people are starting to run toward safety, as the Federal Reserve seems to be hell-bent on tightening into an economically weak situation. If that’s going to be the case, then it’s very likely that we will see ripples throughout the financial markets across the world, and ironically could make the US dollar stronger.

The British pound of course has been one of the better performing currencies around the world, so I think at the very least you could probably look at this as a situation where the British pound will probably outperform other currencies against the greenback regardless of how we react from here, but nonetheless it certainly looks as if we are getting a little bit overstretched. The 1.24 level underneath should be support, so if we break down below there, then it would obviously be a very negative turn of events.

If we were to break down below there, then it’s likely that we could go looking to the 50-Day EMA, closer to the 1.2250 level. On the other hand, if we turn around and take off to the upside and break above the highs for the session on Friday, then it’s very possible that the market could go to the 1.2650 level, followed by the 1.2750 level, both areas have seen a little bit of noise recently. At the end of the day, this is a situation where the market probably needs the pullback to find enough value to get involved in this market to the upside. Regardless, this market will probably continue to be noisy, right along with so many others as there are a lot of questions out there about where we are going next. Expect volatility, and size your positions accordingly, as the market seemed very erratic to say the least.

For a look at all of today’s economic events, check out our economic calendar.