GBP to USD Forecast – British Pound Rises Slightly on Monday

GBP to USD Forecast Video for 28.03.23

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit on Monday, as we continue to trade in the same consolidation we have been in for over a week. That being said, one of the things that is obvious would be the fact that the 1.23 level above is the beginning of significant resistance. In fact, we did get above there and therefore reach the 1.24 level a couple of times in the recent past. We ended up forming a bit of a double top of that level, and therefore it looks very resistant. I suspect that the resistance runs all the way to the 1.25 level based upon previous action, and therefore I do think that the British pound is going to have a lot of trouble going too much further to the upside.

The 200-Day EMA sits near the 1.2120 level and is very flat at the moment. This suggests that the market is likely to stay somewhat consolidation minded, and therefore I think we stay in the same range. I believe that the upside is somewhat limited, and the downside could not only see support near the 200-Day EMA, but closer to the 1.20 level we will start to see even more support. Underneath there, the 1.1850 level would be a significant support level as seen multiple times in the recent past.

In general, I’m looking for signs of exhaustion to start shorting again, because I do believe that eventually the US dollar will pick up a bit of strength. That being said, the market is likely to see one reason or another show up to make the British pound struggle. The most obvious one would be a lack of global growth, as people will look to the US dollar for a bit of safety.

At this point, I am looking for signs of exhaustion to start shorting, with an eye on the moving average underneath, and then down to the 1.20 level. In general, the market is likely to see quite a few troubles above, so therefore I think it’s probably only a matter of time before I get my opportunity. However, if we were to break above the 1.25 level, that could be extraordinarily bullish.

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