GBP/USD Forecast – British Pound Continues to Consolidate Head of the Federal Reserve

GBP/USD Forecast Video for 27.07.23

British Pound vs US Dollar Technical Analysis

The British pound has rallied slightly during the trading session on Wednesday, as we are waiting to see what the Federal Reserve is going to do. After all, a lot of traders out there are betting on the Federal Reserve slowing down quicker than they are stating, but at the end of the day I think it is probably asking a lot to believe that the market is going to get what it wants, as inflation is still a major problem in the United States, but at the same time it’s a major problem in the United Kingdom. At this point, it’s basically a relative argument.

Underneath, the uptrend line comes into the picture for support, right along with the 50-Day EMA which is walking at the same level. The 1.30 level above ends up being your resistance barrier, but we have sliced through it before, so it would not necessarily be a major difficult hurdle to get above and see in this market break above there is just simply a function of being in the longer term uptrend. Alternatively, I do think that we continue to go higher, but I am watching that trend line underneath. Breaking down below that opens up the possibility of a move down to the 1.2650 level, an area that has been important previously. All things being equal, this is a market that I think a short-term pullback more likely than not gets people interested in picking up “cheap British pounds”, as the overall attitude of the market remains bullish.

That being said, it is likely that we will see a lot of volatility along the way, and therefore you need to be cautious with your position sizing but I do believe that eventually the uptrend continues. With that, the 1.3150 level is an area that a lot of people will be paying close attention to, and if we can break that level, then we can continue to move much higher. All things being equal, this is a market that is going to be lively over the next 24 hours.

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