GBP to USD Forecast – British Pound Sluggish

GBP to USD Forecast Video for 15.12.22

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit during the trading session on Wednesday as we continue to see the market try to go higher. Ultimately, we have to pay close attention to the Federal Reserve later in the day, as it is obvious that the Federal Reserve will have a major influence on where we go next. Ultimately, this is a market that I think continues to see a lot of volatility, but it appears that the 1.25 level above is going to continue to be a significant resistance barrier.

Underneath, the 1.22 level continues to be supported, just as the 200-Day EMA will be. In other words, I do think that we could get a little bit of a pullback, but it’s going to be a huge fight to deal with. Ultimately, I think this is a situation where the traders will look at this through the prism of volatility and waiting to see whether or not the Federal Reserve is going to continue to keep its monetary policy rather aggressive.

I do think that’s going to be the case, but at this point it’s going to be interesting to see whether or not we have any type of shift in attitude and whether or not the market looks beyond the statement in the Federal Reserve and tried to hear what they want to hear yet again.

If we do break above the 1.25 level, then the British pound can really start to take off. That being said, it’s difficult to see that happening very easily, at least not without the Fed explicitly talking down the idea of monetary policy being tight.

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