GBP/USD Forecast – British Pound Continues to Show Volatility

GBP/USD Forecast Video for 24.10.23

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit during the trading session on Monday, but still continues to see a lot of overhead resistance. At this point, the market looks as if it is trying to sort itself out, but until we get some type of impulsive move, it’s going to be very difficult to hang onto anything for more than a short-term scalp.

The lows of both the Thursday and Friday candlesticks being broken to the downside could open up quite a bit of selling pressure, as it looks like we are still in the midst of forming some type of bearish flag. On the other hand, if we can break above the 1.2350 level, then it would be a very bullish signal, as it would not only be breaking above a previous area of interest, but it would also have the market skipping over the 50-Day EMA. Breaking above that opens up the possibility of the British pound reaching toward the 200-Day EMA, which of course is a longer-term trend indicator.

Regardless, I think you got a situation where things are going to be very noisy, and I just don’t see how that changes with all of the geopolitical concerns, global growth concerns, and of course the fact that we have a massive amount of companies reporting on Wall Street will move the US dollar in and of itself as people get a better “feel for the economy.” The Federal Reserve is going to stay tight for quite some time, and therefore I think you need to look at that as a major driver of where we are going.

The week has a lot of inflation numbers coming out of various economies that will have a major influence on this pair, as people will start to move the bond market around. With this, it’s very likely that the market continues to show a lot of noisy and choppy behavior, and therefore you need to look at this through the prism of a short-term trading environment in more or less a consolidation pattern than anything else.

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