GBP to USD Weekly Forecast – British Pound Has Hesitation

GBP to USD Forecast Video for 22.05.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has gone back and forth during the trading week, as we continue to hang around in the same consolidation area that we have been in most of the last month. Because of this, it looks like we are essentially unchanged, meaning that the market is still trying to sort out what it wants to do for the longer term. It is probably worth noting that we are between the 50-Week EMA and the 200-Week EMA indicators, so it could show a certain amount of pressure.

The British pound of course is going to be a currency that people run toward if they have more of a positive outlook on the global economy, but the previous week was negative enough to put some doubts in the minds of some of the trading public. If we were to break down below the 1.2350 level, then it’s possible that the British pound could drop down to the 1.1850 level after that. That’s an area that was major support previously, so I do think that it would probably only be a matter of time before value hunters would enter in that area.

Conversely, if we were to take out the 1.27 level, then it’s very likely that we could go looking to the 200-Day EMA, and then I believe eventually the 1.30 level which is not only a psychologically important level, but also a structural region of importance. Either way, we need to wait and see what the markets going to do with an impulsive candlestick, because right now it seems like it’s in a state of flux and indecision.

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