GBP to USD Weekly Forecast – British Pound Slaves Into Resistance for the Week

Christopher Lewis
Published: Dec 2, 2022, 16:42 UTC

The British pound has rallied rather significantly during the week again after initially plunging. However, Friday saw hotter than anticipated employment numbers to re-solidify the resistance.

British Pound FX Empire

In this article:

GBP to USD Forecast Video for 05.12.22

British Pound vs US Dollar Weekly Technical Analysis

The British pound has been back and forth during the bulk of the week, as we continue to see a lot of volatility and market decision-making as to where we go next. The candlestick is bullish, but you will have to notice that we have plunged previously. To the upside, the 1.23 level has offered significant resistance, and therefore if we can break above there, I think it could mean something. Until then, this is a market that is trying to figure out whether or not it wants to continue the massive move higher, or this has simply just been a massive “bear market rally.”

Ultimately, there is quite a bit out there that could throw the markets into disarray, see need to be very cautious about your position sizing right now. This will only become worse later we get into the month as liquidity becomes an issue. Because of this, the market is likely to be very difficult and noisy, so therefore make sure that you have enough money management in place to make a trade possible.

If we break down below the bottom of the candlestick, then it’s likely that the 1.19 level will give way to selling pressure the market breaking above the top of the 1.23 level would be very bullish for risk appetite, but at this point it does not look as likely. I do think one thing that you could probably see is a lot of choppy behavior, but that does not necessarily do much for longer-term traders. I think we start to look toward shorter-term charts between now and the end of the year.

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.

Did you find this article useful?