GBP to USD Weekly Forecast – Buyers Continue to Emerge

GBP to USD Forecast Video for 08.05.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has had a very volatile week over the last 5 days, as we initially felt during the week, but then turned around to show signs of life again. The jobs number on Friday were a complete surprise, showing strength again, but it’s worth noting that inflation in the United Kingdom is stronger than it is in the United States, so it does make a certain amount of sense that people are running toward Sterling in the meantime. With that being said, it’s also worth paying attention to the fact that there are a lot of economic concerns out there that will continue to be a major issue.

Underneath, if we were to break down below the 1.2350 level, then we could see the US dollar strengthened a bit more, but that looks to be less likely at this point. Furthermore, when you look at the upside, the 1.2650 level is an area that I would be paying close attention to, because quite frankly it looks as if it is an area that if the British pound can get above, we probably go much higher.

Ultimately, this has remained a “buy on the dip” type of situation for a while now, and I think that probably remains the case going forward. I have no interest in trying to short this market until we get below the 1.2350 level, but I also recognize that there is a lot of noise just above. In other words, volatility will remain and continue to cause headaches for traders.

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