GBP/USD Forecast – British Pound Continues to Drift Lower

GBP/USD Forecast Video for 13.11.23

British Pound vs US Dollar Technical Analysis

The British pound has fallen a bit during the trading session on Friday, after initially trying to rally. That being said, it’s very likely that the market will continue to drift a bit lower, reaching down to the bottom of the overall bearish flag. The uptrend line of the bottom of the flag will continue to be a significant amount of support, and if we were to break down below there, then the market is likely to continue to go down to the 1.20 level.

All things being equal, if we do rally from here, the 50-Day EMA above should offer a significant amount of resistance, and therefore it’s likely that it should offer a significant ceiling for the market to start selling off from. After all, we have higher interest rates in the United States and of course a lot of geopolitical concerns that could make the US dollar much more attractive. In general, I don’t want to be a buyer of this pair, at least not until we break above the top of the Monday candlestick which of course is a shooting star.

The shooting star sits just below the 200-Day EMA, which is also at the top of the flag. In other words, this is a situation where the market is trying to sort out whether or not we will continue to see negative pressure, I do think that is the case eventually. However, the interest rates in the United Kingdom are a bit higher than many of its other adversaries, so I think it’s probably going to continue to be very noisy.

In general, I think this is a situation where you look for rallies to fade at the first signs of exhaustion, as it could give us an opportunity to pick up “cheap US dollars” going forward. Ultimately, this is a market that continues to see a lot of noisy behavior, but I do think that if you follow the overall trend, you continue to short this market going forward. The market is one that I think is going to be very difficult to convince to turn around to the upside anytime soon.

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