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GBP to USD Weekly Forecast – British Pound Rallies for the Week

By:
Christopher Lewis
Published: Jun 9, 2023, 14:41 GMT+00:00

The British pound initially fell early in the week, but found a bit of support near the 1.2350 level to turn around and show signs of life again.

British Pound, FX Empire

In this article:

GBP to USD Forecast Video for 12.06.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound initially fell during the week to test the 1.2350 level, only to turn around to show signs of strength again. At this point, the market is breaking above the 1.2550 level, which of course is an area that previously had offered a little bit of resistance. That being said, there’s also resistance just above the 1.2775 region, and therefore I think we continue to see a lot of resistance. Ultimately, if we were to break above the 1.2742 level, it’s likely that we could go looking toward the 200-Week EMA, possibly as high as 1.30 above.

More likely than not, some type of volatility will enter the market next week, as we have the Federal Reserve meeting, and that of course will for a lot of haptic into the US dollar. If it does start to sell off in general, the greenback weakness will almost certainly be seen in this pair. On the other hand, if we start to see traders react to the negativity of the global economy, then the US dollar could strengthen, and of course Jerome Powell could be more hawkish than anticipated next week which would produce the same effect.

We are in an area that is important in general, so it’ll be interesting to see how this plays out. If the market were to break out above the recent barrier, then we could start to see a much bigger move, as it becomes more of a “buy-and-hold” market. In that environment, I think you have a situation where we are about to make a bigger decision, so it will be interesting to see how this plays out. If you want, let the market make its decision first, then you can simply follow right along. After all, if the market were to break out into a “buy-and-hold” situation, I could see the British pound going all the way up to the 1.35 level. Underneath, if we were to break down below the 50-Week EMA, then it’s likely that we could go down to the 1.20 level, maybe even a 1.1850 level.

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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