GBP to USD Weekly Forecast – British Pound Continues to Power Higher

GBP to USD Forecast Video for 19.06.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has rallied rather significantly during the trading week, breaking above the 200-Week EMA, which of course is a major indicator. Whether or not we can stay above there remains to be seen but this is most certainly a very bullish sign. A pullback from here could see quite a bit of support near the 1.2650 level, an area that previously had been important as resistance. Ultimately, the market continues to see a lot of upward volatility regardless, and I just don’t see how this changes anytime soon.

Ultimately, I think this is a situation where you are looking for dips to start buying, which of course offers the possibility of value. Ultimately, I think we are trying to get to the 1.30 level given enough time, and therefore that we have a situation where the market will continue to look higher due to the fact that the Federal Reserve held its monetary policy still this week, while the Bank of England looks like it is going to have to fight wage pressures that will almost certainly lead to more inflation.

Because of this, the British pound will continue to see upward pressure. All things being equal, the size of the candlestick is very strong, so it does suggest that we should have plenty of momentum going forward. Not only do I think we go looking toward the 1.30 level at this point, but it’s also very possible we could even go to the 1.33 level after that. It would take a move below the 50-Week EMA to change my longer-term outlook for this pair, which is closer to the 1.23 level underneath.

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