GBP to USD Forecast – British Pound Squeezes Between Two Major Moving Averages

GBP to USD Forecast Video for 02.01.23

British Pound vs US Dollar Technical Analysis

The British pound has gone back and forth on Friday, doing almost nothing as we are sitting between two major moving averages. Because of this, I think we have a situation where the market is simply looking for some type of catalyst to move. We don’t have it yet, and I don’t know that we will until the jobs number comes out on Friday.

Looking at this situation, I think we are more likely than not going to see a lot of noisy behavior, but at the end of the day the 1.25 level is a major ceiling, with the 50-Day EMA underneath offering significant support. If we break down below that level, then it’s likely that we could go down to the 1.15 level, which would take a while to get to. However, that would also kick off quite a bit of selling pressure and it’s possible that we could go even lower at that point.

As things stand right now, it’s more likely than not going to consolidate over the next several sessions as we have no real volume, so ultimately this is a situation where we are probably better off leaving it alone. If we get some type of surprise announcement, that could have the markets moving rather quickly, but that would be more or less due to the lack of volume than anything else. I think at this point, we have a situation where the market is trying to figure out its next move.

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