GBP to USD Forecast – British Pound Pulls Back From Familiar Resistance Barrier

GBP to USD Forecast Video for 24.01.23

British Pound vs US Dollar Technical Analysis

The British pound initially tried to rally on Monday but gave backings rather quickly as we continue to see the same barrier cause issues. The 1.2450 level has been difficult to overcome as of late, so it’s worth noting that pulling back from that area is just a resumption of the same potential “tabletop” that we have been trying to form. At this point, it’s also worth noting that the 200-Day EMA is near the 1.2135 level, with the 50-Day EMA sitting below it and rising, getting ready to potentially form the so-called “golden cross.

In other words, there is a potential for mixed signals, because if we do get a double top, it’s not actually confirmed until we break back below the 1.20 level. At that point, you would be looking for a move toward the 1.15 level. Regardless, it does look like we are struggling at this point, and that the 1.25 level is a major barrier to overcome. If that does in fact end up being the case, then it makes a lot of sense that sellers have returned.

If we were to overcome the 1.25 barrier on a daily close, then it’s possible that the market could be ready to go much higher. At that point, I think that the 1.2750 level is a realistic target over the next several sessions, but I also recognize that there are a lot of moving pieces right now. The Federal Reserve remains tight for longer, while the Bank of England has to deal with inflation and a lack of growth, something known as “stagflation.” In other words, the noisy behavior should continue.

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