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GBP to USD Weekly Forecast – British Pound Tests Support Underneath

By:
Christopher Lewis
Published: May 26, 2023, 14:23 GMT+00:00

The British pound fell rather hard during the course of the trading week to reach the 1.2350 level, where buyers have stepped in to pick up the market.

British Pound, FX Empire

In this article:

GBP to USD Forecast Video for 29.05.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound did fall significantly during the trading week, breaking down below the 1.2350 level, an area where we have seen much support. By doing so, the market looks as if it is trying to turn things back around and continue the uptrend, and it’s probably worth noting that the 50-Week EMA underneath is going to continue to offer support from a psychological standpoint. Furthermore, we have to see whether or not risk appetite picks back up, or if it is going to be fleeting.

To the upside, the 1.2550 level will continue to be important, and if we can break above there, we could see the pickup movement to the upside. That being said, you should also pay close attention to the 1.27 level as it is a major barrier and a gateway to much bigger moves, perhaps to the 200-Week EMA. If we can break above that, then the market could go to the 1.30 level after that.

On the other hand, if we do break down below that 50-Week EMA, it would probably show a lot of a significant breakdown in not only the British pound, but you would probably see the US dollar beat up on a lot of other currencies around the world. After all, the greenback is the main driver in the Forex markets, that of course will be any different here than anywhere else.

That being said, I think it’s probably only a matter of time before we see some type of massive move in one direction or the other, and we will have to be very cautious as to how we allocate our positions, because you do not want to get too big before the market gives you an idea of where it’s going to break.

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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