GBP to USD Forecast – British Pound Pulls Back to the 50-Day EMA

GBP to USD Forecast Video for 19.05.23

British Pound vs US Dollar Technical Analysis

The British pound fell during the early hours on Thursday to show signs of hesitation again, as we continue to consolidate overall. The 50-Day EMA seems to be offering a little bit of dynamic support, which is somewhat expected, as it has been reliable several times in the past. Underneath there, we have the 1.2350 level that has been important a couple of times last month, and therefore could define the bottom of the range that we are in. If we break down below there, then the 200-Day EMA comes into the picture quite quickly.

Looking to the upside, the 1.2550 level had been the top of the range, but we broke above it rather quickly, only to pull back into that area again. Whether or not we can break back above there is a completely different question, but at this point it seems like that area will not be as difficult overcome as it was the last time if we do in fact see bullish pressure.

Keep in mind that the US dollar is considered to be a safety currency, and therefore if we have some type of shock to the system, it would make a certain amount of sense that this pair would fall. If the market were to break down below the 200-Day EMA, that could open up the possibility you will move down to the 1.1850 area, which had been important multiple times in the past. I think at this point, the US dollar is a bit oversold so it’s not overly surprising to see a bit of hesitation to continue the uptrend. Looking at this chart, we are most certainly bullish overall, but there does seem to be a bit of exhaustion settling into the market, as risk appetite seems to be taking a bit of a hit as well.

With all that being said and done, the market looks as if it’s in the midst of some type of short-term correction, but whether or not I can pick up momentum remains to be seen. I would not look for major movies to the downside, but it is possible that we have a little bit of short-term negativity here.

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