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GBP to USD Weekly Forecast – British Pound Pulls Back From Resistance

By:
Christopher Lewis
Published: Jun 2, 2023, 16:31 GMT+00:00

The British pound rallied during the course of the trading week but has hit a bit of a brick wall at the 1.2550 level.

British Pound, FX Empire

In this article:

GBP to USD Forecast Video for 05.06.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has rallied during the bulk of the week, reaching the 1.2550 level. This is an area that has been very important multiple times in the past, and we exhausted the upward momentum on Friday as the jobs number was much stronger than anticipated in the United States. If the market were to break above there it would obviously be a very bullish sign, perhaps opening up the possibility of a move to the 1.2650 level.

On the other hand, if we were to drop from here I think that the 1.2350 level underneath is supported. If we break down below there, then the market is likely to continue to go much lower. I think at this point in time it’ll be interesting to see how this plays out, due to the fact that the market is struggling in what looks to be a bit of a topping pattern, and it’s also worth noting that there are a lot of concerns around the world with the global economy. If we start to see things play out in a very negative light, that could have people looking toward the greenback for safety.

Ultimately, I think in the short term we are more likely than not going to continue to bounce around between the 1.2350 level underneath and the 1.2550 level above. In general, I think this is a situation where we continue to see a lot of choppiness so position sizing will be crucial. Both central banks are very tight with monetary policy, and of course the June 14 Federal Reserve interest rate decision will be parsed and watched very closely for direction.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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