GBP/USD Forecast – British Pound Continues to Power Through Resistance

GBP/USD Forecast Video for 14.07.23

British Pound vs US Dollar Technical Analysis

The British pound has rallied significantly during the trading session on Thursday, as we continue to see inflation in the United States cool off, and therefore it’s likely that we continue to see the US dollar drop a bit. This will be the case as traders anticipate that the Federal Reserve may not have to be as aggressive, and with that being the case, I do think that we will continue to go higher.

A short-term pullback should offer buying opportunities, and I do think that you would get those occasionally. However, this is the scenario where the market will continue to go higher given enough time and therefore I think you will eventually see value hunters coming in to pick up this market. The 1.30 level will continue to be an area of intense focus, as it is a large, round, psychologically significant figure, and of course an area that just offered a significant amount of resistance. “Market memory” comes into the picture here, so with that being the case I think you’ve got a situation where the market will find itself testing the resolve of the overall bullish pressure.

Keep in mind that the US dollar might be the biggest mover, and therefore I anticipate that the market may continue to go higher, perhaps as high as the 1.3250 level, maybe even the 1.35 level. Because of this, I think that it is only a matter of time before we see value hunters come in on those pullbacks, and therefore I have no interest in shorting this pair. I believe it is probably obvious at this point that the US dollar is on its back foot, and it’s obvious also that the British pound has been very strong. I don’t expect to see this changing anytime soon, and therefore I remain bullish of this pair. Ultimately, the market will probably continue to be bullish, but we are getting a little stretched so don’t be surprised at all if you see some type of short-term turnaround.

As far as selling is concerned, I would need to see the massive trendline broken, something that we are nowhere near doing, and therefore it’s not even a thought at this point.

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