GBP to USD Forecast – The British Pound Continues to Pressure Resistance

GBP to USD Forecast Video for 06.12.22

British Pound vs US Dollar Technical Analysis

The British pound has gone back and forth during the course of the Monday trading session, suggesting that the British pound will continue to try to break out against the US dollar. We have seen a huge move upwards over the last several weeks. Ultimately, the question now is whether or not we can continue to go higher, but it certainly looks as if we are going to make some type of follow-through. If we do, then we could see the British found go to the 1.25 level.

Underneath, we have the 200-Day EMA, which sits right around the 1.21 level, and can offer a significant amount of psychological and technical support. If we can stay above that, then we remain bullish. On the other hand, if we were to crash below the 1.20 level, then I think it could lead to another selloff. Ultimately, this is a market that I think is trying to figure out where it wants to go for the longer term, and as we are heading toward the end of the year, it seems like traders are trying to lead into some type of major “risk on rally.”

To the upside, I see the 1.25 level as being an area where a lot of psychology comes into play, so it makes a certain amount of sense that we could see resistance there. Breaking above there truly will set this market free to go much higher, but we will have to wait and see whether or not that can actually happen. Pay close attention to the bond market, because interest rates in America will have a huge effect on where we go next as well.

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