GBP to USD Weekly Forecast – British Pound Has Choppy Week

GBP to USD Forecast Video for 30.01.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has gone back and forth in the course of the trading week as we continue to see a lot of noisy behavior in the Forex markets overall. At this point, it looks as if the 1.25 level continues to be a major barrier that’s going to be difficult to break beyond. If we can break above the 1.25 level, it would obviously be a big win for the bulls. That being said, it does look like it’s going to be difficult to get above there, because quite frankly we’ve done everything we can to break out, but still have not been able to.

Underneath, the market does have some distance he could travel to the downside, namely the 50-Week EMA which is currently sitting at the 1.2250 level. The market will continue to see a lot of noisy behavior regardless of what happens next, especially as there is so much misunderstanding as to what’s going to happen with central banks. Furthermore, you need to keep in mind that the Federal Reserve has a meeting next week and an announcement on Wednesday, which will obviously have a significant effect on the market.

If we do break down below the 50-Week EMA, then we could go down to the 1.20 level underneath, which is where we have been hanging around in the past and looking for support. There is a hammer from a month ago on the weekly chart that I would pay special attention to. At this point, it does not look like we are ready to make a bigger move, but at this point I suspect you are probably looking at more of a range bound market.

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