GBP/USD Forecast – British Pound Continues to Grind Away

GBP/USD Forecast Video for 06.07.23

British Pound vs US Dollar Technical Analysis

The British pound has fallen just a bit during the trading session on Wednesday, as we continue to hang around above the 1.2650 level, an area that has been previous resistance, and could very well end up being a support level. Furthermore, we have the 50-Day EMA underneath that is reaching toward this area, which could offer a bit of technical support as well. The market remains positive, as it looks like we are hanging around and trying to form a bit of a bullish flag.

The 50-Day EMA offering support is something you should pay close attention to, as it is a major technical indicator. If we were to break down below there, then the 200-Day EMA comes into the picture offering a certain amount of support near the 1.2350 level. That’s an area where we have seen support for, therefore I think it gives us an opportunity to see a little bit of market memory in this general vicinity.

To the upside, the 1.2850 level is a resistance barrier that a lot of people will be paying close attention to, and if we were to break above there, then the market is more likely than not going to open up the possibility of a move to the 1.30 level, which is a large, round, psychologically significant figure, and therefore I think a certain amount of people will be paying attention to that and it could be an area where we would see profit-taking.

Regardless, this is a market that will continue to be very noisy, due to the fact that the Bank of England and the Federal Reserve both are looking to tighten monetary policy, so you have a situation where the pair of currencies will both continue to be strong. All things being equal, this is a market that is still in an uptrend, so you have to look at it through that prism, but I also recognize that it will probably be more or less a grind than anything else. Ultimately, I do think that the 1.30 level will be targeted, but it may take some time to get there.

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