GBP to USD Forecast – British Pound Rallies to Continue Consolidation

GBP to USD Forecast Video for 15.02.23

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit during the trading session on Tuesday, as we continue to see a lot of noisy trading all around. Ultimately, we are above the 50-Day EMA and the 200-Day EMA, so it does suggest we are heading into a bullish move, at least in theory. However, those moving averages are a bit flat, so I only read so much into them. With that being said, it is very likely that we will see a bit of hesitation, but ultimately, I do think that we may try to make it back toward the top of this overall range. Whether or not we can break out is a completely different question of course, but right now I don’t think the markets too worried about it.

If we do turnaround from here, breaking down below the moving averages opens up the possibility of revisiting the 1.20 level, an area that’s been important more than once. In that scenario, you have to assume that there will be a certain amount of support there due to the fact that it’s a psychologically important figure. Breaking down below there then opens up the possibility of a move to the 1.1850 level. That area was the latest “swing low”, and therefore I think you got a situation where you would have to see some buyers. Anything below there opens up a massive drop lower, probably down to the 1.15 level but I think we have some work to do before that happens.

The alternate scenario is that we do in fact breakout to the upside. That would mean taking out the 1.25 level and holding it. In that move, I would anticipate that the British pound would go much higher, and it could kick off a major bullish run.

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