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

GBP to USD Forecast Video for 06.03.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has initially rallied during the course of the trading week to break above the 1.20 level, reaching towards 1.21 level before pulling back. We ended up forming a bit of an inverted hammer, so therefore it’s going to be interesting to see how this plays out. The previous week formed the same candlestick, and the week before that was very similar. In other words, every time we rally it looks like the sellers are starting to come back in and push lower.

It looks as if the area around the 1.19 level is going to continue to be support, so I do think it’s worth watching. Breaking down through that area then opens up a bigger drop from what I can see, which of course is what would coincide with the longer-term trend. We had bounced rather significantly to test the 50% Fibonacci level, and then even formed a bit of a double top in that area. By doing so, this is a market that I believe continues to be very noisy, but in the end will find plenty of sellers to come in and punish it.

If global risk appetite continues to struggle, I just don’t see how this market takes off to the upside. A breakdown below the 1.1850 level will open up a move down to the 1.15 level, followed by the 1.1250 level. That does not necessarily mean that it will be sudden or have a lot of momentum, but that certainly looks as if it would be the more likely of scenarios right now.

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