GBP to USD Weekly Forecast – British Pound Gives Up Early Gains for the Week

GBP to USD Forecast Video for 20.02.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has initially rallied during the trading week but gave back gains in order to show hesitation. With that being the case, I think we’ve got a situation where the market is trying to do everything it can to break down as we have seen recently. That being said, the 1.1850 level has offered a bit of support, and it looks to me like we are trying to do everything we can to get below there. If we do break down below that level, then it would almost certainly be a very negative turn of events that could send this market much lower. In that scenario, I fully anticipate that the market would try to get down to the 1.15 level.

The 1.15 level is an area that is a large, round, psychologically significant figure, and of course an area that a lot of people would be paying close attention to. That being said, it’s also an area where we had seen previous resistance, so I would assume that we should see reasonable support. In that situation, it’s very likely we continue to see quite a bit of noise in that barrier area. Nonetheless, if we break down below that, then it’s likely that we could go down to the 1.10 level underneath, which would take a lot of negativity. However, the one thing that you should probably pay attention to is that the bounce had been very strong, but then again it’s also worth noting that we had melted down to get to that area. In other words, the volatility probably continues to be a major issue.

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