GBP to USD Forecast – British Pound Pulls Back to Find Buyers

GBP/USD Forecast Video for 26.06.23

British Pound vs US Dollar Technical Analysis

The British pound initially pulled back a bit during the trading session on Friday but has found buyers on this dip. The 1.2650 level continues to be an area of interest, and it looks like the previous resistance is now starting to offer a certain amount of support. The 50-Day EMA is starting to race toward that area, as it currently hangs around the 1.25 level. The uptrend has been very strong, and therefore it’s not a huge surprise to see that the market is going back and forth.

All things being equal, you should remember that the Bank of England has shocked the market by raising interest rates by 50 basis points instead of the expected 25. Because of this, the market is likely to continue to see a lot of noisy behavior, but I do think at the end of the day, the fact that the central banks of both countries are likely to be very tight means that we will continue to see more choppy behavior, but also may continue to see a bit of the uptrend, but quite frankly I think it’s probably going to be a situation where you need to be cautious with your position size.

If we were to break down below the 50-Day EMA, then it’s possible that we could go down to the 200-Day EMA, which is sitting right around the 1.2350 level. That was the previous support level and therefore should have a certain amount of buying interest in that area. If we were to break down below there, then the market may continue to go much lower, but ultimately, I think that is something that would need an external reason to do so.

Ultimately, this is a market that I think will be a lot of noise just waiting to happen, so you will have to deal with that. However, until things change, it’s very unlikely that we would continue to see more upward pressure than down, so while I keep in mind that the global uncertainty could put money into the US dollar, the reality is that the trend is still to the upside at the moment.

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