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

GBP to USD Forecast Video for 27.02.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has initially tried to rally during the trading week, but then gave back gains near the 1.21 level. By doing so, we ended up forming a bit of a significant inverted hammer, and it’s particularly telling as we are now below the 1.20 level. It is probably at this point only a matter of time before we break through this support, and then open up a bigger move lower. In this scenario, I think it is probably going to continue to be a market that favors the US dollar, especially as we are starting to see a lot of fear out there.

If we can break down below the 1.1850 level, it’s likely that we could go down to the 1.15 level, which of course is a large, round, psychologically significant figure, and therefore it’s worth noting that there will probably be a bit of noise in that general vicinity. That was an area that we had seen a significant amount of resistance previously, so therefore “market memory” could come into play and therefore offer a bit of a bounce.

If we were to turn around and break above the top of the candlestick for the week, I still would not be very bullish, because you can see how many long weeks to the upside, we have had over the last 3 weeks, and therefore it shows me that there is a lot of selling pressure above there. With that being the case, I think it’s probably more of a “fade the rally” type of market on short-term charts, but longer-term charts are more or less going to buy US dollars and hold onto them.

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