GBP to USD Forecast – The British Pound Has Been Quiet as We Sit at Extreme Highs

GBP to USD Forecast Video for 10.04.23

British Pound vs US Dollar Technical Analysis

The British pound has gone back and forth during the trading session on Friday, as we continue to see hesitation at the 1.25 region. The market continues to see a lot of resistance, especially as the area has been important in the past. Ultimately, you need to keep in mind that the Friday session was also Good Friday, so most traders were away. Furthermore, the Non-Farm Payroll announcement has a major influence as well, but at this point in time, it’s very likely that we are going to see hesitation in the overall reaction, as liquidity will be a major problem.

The market continues to see a lot of questions about what the Federal Reserve is going to do so that obviously has a major influence on what happens with the US dollar. Furthermore, it’s worth noting that we are a bit overstretched in the British pound, so it does make a certain amount of sense that we may have to pull back. If we drop down below the 1.24 level, then it’s possible that we could go down to the 50-Day EMA, which sits just above the 1.22 level.

Keep in mind that full liquidity won’t be seen until we get back to the US on Monday, so with that being the case you need to be very cautious about any positions you put on. Furthermore, you also have to realize that the Non-Farm Payroll could be important due to the fact that the market is trying to figure out what the Federal Reserve is going to do going forward, and of course, the employment situation will have a lot to say about the potential inflation that we might see. Nonetheless, Friday is essentially going to be a “throwaway day”, and we will start to see what the market thinks about that on Monday. If the market were to break down below the 1.24 level, then that 50-Day EMA could be a target, but on the other hand, if we were to turn around a break above the ¥125 level on a significant daily close, then it’s very likely that the British pound could go looking to the 1.2750 level.

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