GBP to USD Weekly Forecast – British Pound Continues to Slam Into Resistance
GBP to USD Forecast Video for 12.12.22
British Pound vs US Dollar Weekly Technical Analysis
The British pound as gone back and forth during the week, as it looks like we are running into a little bit of resistance near the 1.23 level, which is a large, round, psychologically significant figure, as we continue to see a lot of noisy behavior. If we can break above the top of the weekly candlestick, then it’s likely that the market could go looking to the 1.25 level. On the other hand, if we break down below the bottom of the candlestick, then we could open up a move down to the 1.20 level. Quite frankly, the market is going to continue to focus on the Federal Reserve and what they are going to do next week.
With that being said, we are going to run into liquidity issues, and it could do a lot of damage to the markets and cause a lot of erratic movements. Ultimately, people are looking at this through the prism of peak inflation in the United States, so although the United Kingdom is almost certainly heading into a recession, the reality is that everybody pays attention to the Federal Reserve first.
Ultimately, this is a market that I think continues to see a lot of noisy behavior, but I think at this point we continue to see the US dollar on its back foot. The Federal Reserve meeting next week will take front and center stage, so a lot of this is going to come down to whether or not they sound extraordinarily hawkish, but quite frankly at this point I think a lot of people already have that priced into their models as well.
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