GBP to USD Weekly Forecast – British Pound Running Into Resistance

GBP to USD Forecast Video for 10.04.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has rallied significantly during the course of the week, piercing the 1.25 level. This is an area that obviously is psychologically important, but it should also be pointed out that we are in the midst of a cluster in the past where there had been a lot of trading, which extends all the way to the 1.2660 level. Breaking through all of that would be very bullish, and would send the British pound into a bullish phase, perhaps all the way to the 1.37 level.

The British pound has been one of the better currencies to own this year, and at this point, it’ll be interesting to see if that changes anytime soon. After all, we are starting to see serious concerns about global growth and inflation, so risk appetite is going to be a bit of a moving target. Underneath, the 50-Week EMA sits at the 1.22 region, so that could be supported. On the other hand, the 1.2660 above is significant resistance, and we just started to pile into the resistance region, so it’s not a huge surprise to see that we’ve seen a little bit of a pushback. Whether or not that continues remains to be seen, but right now it seems as if we are content to simply hang around in this area.

Keep in mind that this coming week could be a bit volatile, in reaction to the Non-Farm Payroll announcement in the United States as most of the liquidity would have been taken out of the market on Friday, and then again in Europe on Monday. Regardless, we have a handful of levels to pay attention to, and I do think it is probably only a matter of time before we make a decision as to whether or not we are going to truly break out or pull back toward the bottom of the overall consolidation area that we have been in for the last couple of months. Keep your position size reasonable, this is going to continue to be a very volatile and choppy market, right along with the rest of the Forex world. The most important thing you can do is practice sound money management in this environment.

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