GBP to USD Forecast – British Pound Testing the Top of Its Range

GBP to USD Forecast Video for 01.05.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound initially fell during the week, but then turned around to bounce to the upside. At this point, the market is likely to go looking toward the 1.2550 level above, which is an area that should offer a certain amount of resistance, extending to the 1.2650 level after that. If we can break above there, then it’s likely that we could go to the 200-Week EMA, perhaps even the 1.30 level. At this juncture, the British pound has been a bit of a stretch, but it is currently trying to break out of a consolidation range and that might be something worth paying attention to.

Furthermore, the market breaking above the 1.2550 level would also be breaking above the top of a massive shooting star from 2 weeks ago, and that in and of itself will probably attract a lot of attention. On the other hand, if we break down below the 1.2350 level, then it opens up the possibility of a move down to the 50-Week EMA, near the 1.2 to reason.

Ultimately, this is a market that I think is trying to figure out what the Bank of England is going to do, and of course the Federal Reserve. I do think that we have a high probability of showing signs of exhaustion rather soon as well. I think we will continue to be very choppy, but next week will we get the Federal Reserve meeting, it’s likely that we could eventually see the market reacts in one direction or the other from that, but I think the market is still believing that the Federal Reserve is going to back off. They could drop the hammer next week, so pay close attention.

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