GBP to USD Forecast – British Pound Testing Major Figure Again

GBP to USD Forecast Video for 14.04.23

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit during the trading session on Thursday, as we have seen the market break above the psychologically and structurally important 1.25 level. This of course is an area that’s going to attract a lot of attention, from both a structural and the psychological point of view. At this point, it certainly looks as if the British pound is trying to do everything it can to continue going higher, but at this point we are also running into a lot of selling pressure. Next couple of candlesticks could be very noisy going forward, so therefore you need to be very cautious.

That being said, if we do get a significant close on the daily chart above the 1.25 level, it will more likely than not send the British pound toward the 1.2750 level, and then possibly been as high as 1.30 over the next several weeks. However, if we get a sudden “risk off” type of move, that could send the British pound back down to the 1.24 level, which is an area that I would consider to be support after it had been significant resistance previously. That being said, I am a bit cautious about getting overly aggressive one way or the other until we get some type of confirmation candle.

If we were to turn around and break down below the 1.24 level, that could send this market much lower, perhaps down to the 50-Day EMA which is closer to the 1.2250 level. It is rising, so one would have to assume that there is a certain amount of dynamic support attached to it. That being said, there is probably even more support near the 1.22 level where the 200-Day EMA currently sits. Either way, I suspect that the British pound will continue to be a very noisy currency, as it has been extraordinarily bullish, and of course we have seen a lot of questions about inflation in the United Kingdom. That being said, I do think that the pound will continue to be a little bit better performing against the US dollar than its contemporaries, as we have seen all year long.

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