GBP to USD Weekly Forecast – British Pound Has Choppy Week

GBP to USD Forecast Video for 13.02.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has gone back and forth during the course of the trading sessions of the week, as we continue to threaten the 1.20 level. The 1.20 level is an area that a lot of people will be paying attention to, as it is a large, round, psychologically significant figure. The hammer from about a month ago suggests that there could be a certain amount of support underneath that will be difficult to break through. However, it’s also worth noting that the US dollar is starting to flex its muscles, and although this has been a huge move to the upside over the last several months, the reality is that it is still a pullback in a longer-term potential downturn. Writing down below the hammer from about a month ago really opens up a massive amount of selling pressure.

The alternate scenario is that we try to bounce and go to the 1.24 level above, but that would more likely than not end up being a short-term move and will probably see a lot of resistance if we do in fact get there. Either way, I think this is a situation where we will probably see more choppiness, but I also believe that we will probably see plenty of opportunities, especially if you can trade off of a short-term chart. Longer-term traders probably have to wait for a lot of work to get done, but right now it looks like we are simply at the bottom of a range. I do believe at this point we probably have a significant amount of momentum building up, and we should eventually see a huge break one way or another.

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