GBP to USD Forecast – British Pound Reaches Toward Resistance

GBP to USD Forecast Video for 24.11.22

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit during the trading session on Wednesday, to reach toward the 1.20 level. The 1.20 level has been resistance as of late, and obviously has a lot of psychology attached to it, as it is a large, round, psychologically significant figure. Ultimately, if we can break above here, then the market has to worry about the 200-Day EMA.

Anything above the 200-Day EMA could change the trend completely. That being said, the markets will continue to look and this pair through the prism of whether or not the United Kingdom will go through massive recession and have to loosen monetary policy, or if fighting inflation will be the biggest thing.

Ultimately, if we do break down below the 1.18 level, that question could be somewhat answered, as the market would drop down to the 1.15 level eventually. I think the only thing you can probably count on is a lot of volatility over the next week or 2, especially as the next couple of days are going to be thin in North America as it is Thanksgiving on Thursday.

That being said, at the end of the day on Wednesday we will get the FOMC Meeting Minutes, which could also be important as to the direction of the US dollar. In other words, I would expect a lot of noise, but I also expect to see some type of definitive answer as to the next move in this pair rather soon. Keep in mind that interest rates in America have cooled off a bit, but if they start to pick up again, that could send this pair lower.

For a look at all of today’s economic events, check out our economic calendar.