GBP to USD Forecast – British Pound Rallies Yet Again

GBP to USD Forecast Video for 14.06.23

British Pound vs US Dollar Technical Analysis

The British pound has rallied during the trading session on Tuesday, breaking above the 1.2550 level. The area just above there would have seen a lot of resistance multiple times, and therefore I think it does make a certain amount of sense that we stall in this area. This is especially true considering that the Federal Reserve has a meeting and a statement on Wednesday. All things being equal, this is a market that continues to see a lot of noisy behavior, and we are close to the top of the overall range, and therefore I think we’ve got a situation where we continue to see a lot of the similar behavior that was such a huge feature of this market a couple of months ago.

The 50-Day EMA is closer to the 1.2450 level, and is rising, and below there we have the 1.2350 level offering support, with the 200-Day EMA racing toward it. It’s not until we break down below that level that I think you start to see the British pound struggle, and at this point I think it’s a situation where we will be paying close attention to the Federal Reserve announcement on Wednesday, and he could give us a little bit of a “heads up” as to where we go next, but right now it still looks as if we are simply bouncing around in an extended level, and the question now is whether or not we are trying to determine whether or not the next move is lower, or if we are just trying to work off some of the excess froth.

If we were to break above the recent high, then it’s likely that we could go looking to the 1.30 level, which of course is a large, round, psychologically significant figure, and an area that will attract a certain amount of attention, be it in a resistance manner, or if it is a target that the market will try to get to. That being said, this is a market that I think continues to see a lot of volatility, and the rest of the week will probably just be more of the same as we try to sort things out.

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