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

GBP to USD Forecast Video for 30.01.23

British Pound vs US Dollar Technical Analysis

The British pound has pulled back just a bit during the trading session on Friday, as we continue to see the same area cause headaches for the bulls. There is a potential double top to be formed, but it doesn’t kick off quite yet. It’s also worth noting that we have a potential golden cross with the 50-Day EMA trying to break above the 200-Day EMA. This resistance barrier is focused on the 1.25 level, so pay close attention to that as well. If we could break above there, that would be a very bullish sign, but right now it looks like we just don’t have that type of momentum.

At this point, a pull back toward the moving averages does make a certain amount of sense, but it seems like the market is looking for any reason it can to start shorting the US dollar on any given day. However, we could be a little overdone and I think the British pound might be a bit of a harbinger for what we see around the Forex world. While I haven’t necessarily been trading this pair lately, I have been paying attention to it. If we do get a sudden selloff here, then it’s likely that we will see the US dollar strengthened against most other currencies.

Furthermore, if we were to break above the 1.26 level, then it opens up the possibility of a move to the 1.30 level. The 1.30 level is obviously a large, round, psychologically significant figure, but if we get all the way up there than I believe that the entire trend has changed long-term.

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