GBP to USD Weekly Forecast – British Pound Forms Resistance Candle

GBP to USD Forecast Video for 27.03.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound initially took off to the upside during the trading week but found a lot of resistance against the British pound near the crucial 1.23 area. By doing so, we ended up forming a bit of a shooting star, but it still looks as if we are more likely than not going to see a lot of back-and-forth noisy trading behavior. With that being said, I think this is more or less going to be a market that’s going to hang around in a range, perhaps between the 1.24 level above and the 1.1850 level underneath.

There are a lot of questions as to what central banks around the world are going to do, and there are even people now trying to speculate that the Federal Reserve may have to cut rates later in the year. In other words, mass chaos should prevail, and therefore it might be difficult to treat this from a longer-term standpoint until we break out of this range. However, if and when we do break out of this range, it probably sets up for a rather large move. The 50-Week EMA sits right at the base of this candlestick, which is also right in the middle of the overall range as well.

If we do break down below the 1.1850 level, it opens up a clear shot to the 1.15 level. On the other hand, if we can break above the 1.25 level, it could open up a huge, massive bullish run that could last for quite some time. I’m not looking for either in the short term, so I will more likely than not be trading shorter time frames.

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