GBP to USD Forecast – British Pound Pulls Back From Resistance

GBP to USD Forecast Video for 03.04.23

British Pound vs US Dollar Technical Analysis

The British pound has initially tried to rally during the trading session on Friday but continues to see a lot of resistance in the 1.24 level. The 1.24 level had previously been a bit of a double top, which of course will attract a lot of attention. And now appears it’s trying to form some type of triple top. I also suspect that the resistance runs all the way to the 1.25 level, and it certainly looks as if the market is paying close attention to it. The market of course will pay close attention to the US dollar if there’s any type of run towards the US dollar based upon a flight to safety.

If we do break down, it’s likely that we would see the market drop down to the 1.22 level, which is essentially where the 50-Day EMA is currently residing. The 200-Day EMA is just below there as well, so I suspect that somewhere in that general vicinity we could see a lot of buying pressure. However, we have broken through there a few times, and therefore it’s very possible that we get break down through there as well. At that point, then I would be looking at a move down to the 1.1850 level underneath, which is the bottom of the overall big range that we have been in.

Regardless, I think this is a market that is overbought, so a little bit of a correction makes a certain amount of sense. Furthermore, there are a lot of moving pieces out there when it comes down to the global economy, with that in mind, it’s worth noting that the lack of global growth and of course the fact that the interest rates in America have spiked again suggests that we are going to see demand for the US dollar. On the other hand, if interest rates start to drop again, that may allow the British pound to rally a bit. Either way, I think you’re probably going to see a certain amount of noisy behavior, but I think there’s probably much more likelihood of the market falling than rising due to the fact that we are at the top of a major consolidation area.

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