GBP to USD Forecast – The Pound Continues to Drift Lower

GBP to USD Forecast Video for 27.12.22

British Pound vs US Dollar Technical Analysis

The British pound has initially tried to rally through the 1.25 level over the last several weeks, but it has drifted lower since then. As we head into the holiday season, it looks like most people were not willing to hang on to that type of risk. At this point, if we break down below the 50-Day EMA, then I believe that the British pound will continue to drop to the 1.15 area. After all, we are hovering around 1.20 level, but it’s also worth noting that most major banks around the world are closed during the Monday session, so you can read only so much into the trading action.

The 200-Day EMA sits just above, it could cause a little bit of noise but this is looking more and more like a “throw over” or a “false breakout.” This will be especially true if we get some type of “risk off move” around the world. I suspect that the next couple of days are going to be extraordinarily quiet, and the fact that we are hanging around between the 50-Day EMA and the 200-Day EMA typically means that the market is in some type of squeeze mode.

I think what we may be waiting for is the jobs number. That being said, anything can happen and obviously in this time of year if we get some type of errant news article that crosses the wires, that could cause a lot of chaos because of the thin conditions. However, most of the time this week is very quiet, and therefore I would not be looking for big moves, at least not at this point in time.

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