GBP/USD Forecast – British Pound Continues to Reach Toward 1.30

GBP/USD Forecast Video for 13.07.23

British Pound vs US Dollar Technical Analysis

The British pound has rallied significantly during the trading session on Wednesday, as CPI numbers in the United States came out lower than anticipated. Because of this, people are starting to bet that the Federal Reserve may not be as aggressive as once feared, and that of course has the US dollar falling in strength overall. In this environment, it’s very likely that we continue to see the British pound reach toward the 1.30 level, and possibly even break above there. We are a little stressed at the moment, so do not be surprised if we get a short-term pullback, but that pullback will more likely than not be looked at through the prism of some type of value play.

Ultimately, the market will continue to see a lot of upward pressure in general, with the 50-Day EMA hanging around the 1.2650 level. This is an area that is a previous area of noise, and therefore I think that then becomes your “floor in the market.” As long as we can stay above there, I think the market continues to find plenty of buyers willing to jump into the market and pick up the British pound. It seems like it’s open season on the US dollar right now, so therefore I think we get an idea that the trend has started to accelerate more than anything else.

That being said, if we were to turn around break down below the 50-Day EMA, it opens up the possibility of a move down to the 1.2350 level, which is where the 200-Day EMA is. That is an area where the entire long-term trend changes, so I would be very cautious about that as well. In general, this is a situation where it looks extraordinarily unlikely to get down there, but it is possible that we could see an attempt to make that happen. If we break above the 1.30 level, then it opens up the possibility of a move to the 1.3250 level. Because of this, market participants continue to see plenty of value hunters out there, so I think that every pullback we get will probably take off to the upside given enough time.

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