GBP to USD Weekly Forecast – British Pound Bounces for the Week

GBP to USD Forecast Video for 16.01.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has rallied during the trading week, slamming into the 50-Week EMA. By doing so, we have a lot of noisy behavior, as we are trying to do everything we can to break out. At this point, it looks like if we can break above the top of the weekly candlestick, we could then go look into the 1.2450 level, which is an area that caused a lot of resistance previously. The 1.25 level has been a major barrier a couple of times in the past, so that obviously makes sense as a potential target if we do in fact break out.

A lot of traders out there are starting to think along the lines that the Federal Reserve is going to slow down its rate hiking policy. Whether or not that’s true will remains to be seen, but it certainly seems as if the market is pressing the issue. Because of this, it looks like this is still a “buy on the dip” market, but if we were to give up the 1.20 level, that could be a very negative turn of events. If we take out the 1.25 level, that would be a very bullish sign, sending this market much higher.

As things stand right now, I think we’ve got a situation where the markets are trying to figure out where they want to be, and therefore we will continue to see a lot of volatility. I think given enough time, we probably have a situation where the markets will have to make some type of bigger decision, but right now over on the precipice of either continuing the downtrend, or completely turning things around.

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