GBP/USD Forecast – British Pound Continues to Flirt With Support

GBP/USD Forecast Video for 27.06.23

British Pound vs US Dollar Technical Analysis

The British pound has shown itself to be stagnant during the Monday session as we are sitting above a major level of interest. After all, the market has been rather bullish for some time, but the 1.2650 level just below is an area previously resistant. Now that we are pulling back to test that area, it’s possible that we could see buyers jumping in. The 50-Day EMA is racing toward that area; therefore, it should be an area of interest.

Ultimately, this is a market that I think continues to go higher, and you could even make an argument that we are forming some small bullish flag to take advantage of. If we do break to the upside, the market could go to the 1.30 level, an area that I think makes quite a bit of sense considering that it is a large, round, psychologically significant figure and an area that has been important for quite some time and has historical significance as well. Short-term pullbacks continue to be opportunities to pick up value. Ultimately, I do think that the market goes much higher, perhaps after a bit of consolidation, and I think that it’s not until we break down below the 50-Day EMA that you can take any short idea to fruition.

All things being equal, this is a market that I think will continue to be very noisy, but nonetheless, I do think that the Bank of England continues to fight massive inflation, and therefore it’s likely that we continue to see a lot of noisy behavior to the upside, but it’s likely going to be noisy along the way, it’s likely that we could continue to see a lot of volatility regardless. Ultimately, if we were to break down below the 50-Day EMA, then we could come face-to-face with the 200-Day EMA, but I think, ultimately, the market will continue to find plenty of people along the way to get involved. Ultimately, I do expect to see a lot of volatility, but there is still quite a bit of upward pressure so you have to look at it through that prism.

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