GBP/USD Forecast – British Pound Continues to Rally

GBP/USD Forecast Video for 27.11.23

British Pound vs US Dollar Technical Analysis

The British pound has shot straight up in the air on Friday as it seems like the US dollar is getting hammered against almost everything. At this point, I think we got a situation where the market is likely to continue going higher, perhaps reaching the 1.2750 level given enough time. That is also where the 61.8% Fibonacci level currently resides, so I would not be surprised at all to see that be a very important place on the longer term charge. At this point, I think you have to recognize that that this has become a “buy on the dips” market, and the market is trying to force the Federal Reserve to start cutting rates.

Ironically, if the US dollar continues to fall, it will push inflation up in the United States, and may force the Federal Reserve to start hiking again? If that’s the case, who knows what will happen but in the short term it looks like we continue to see buyers come into this market and try to get that last dose of “hopium” out of the way for cheap US dollars coming from the Federal Reserve. Interest rates have been dropping for some time, but whether or not that actually happens for a longer-term move remains to be seen.

Looking at the chart, the 1.2450 level should now offer support, and of course with the 50-Day EMA starting to curl higher and challenge the 200-Day EMA, we may have a situation where the markets are trying to price in a huge move higher. Whether or not that ends being the case remains to be seen, but at this point I think you got a situation where you have to look at this through the prism of potential value on the dips. If we were to break the role that, then obviously it would be a very negative turn of events but right now I just don’t see that happening. Because of this, we are starting to see a “one-way trade” work itself out and therefore I just don’t see how you can get short of this market until we get some type of major breakdown.

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