GBP/USD Forecast – British Pound Gets Crushed

GBP/USD Forecast Video for 20.07.23

British Pound vs US Dollar Technical Analysis

The British pound has fallen rather hard against the US dollar, as we have seen the greenback pick up a bit of strength around the Forex world during the Wednesday session. That being said, as I write this article we are testing the 1.29 level, an area that doesn’t necessarily mean anything other than the fact that it is a large, round, psychologically significant figure. Breaking down below there is possible, and then it’s possible that we could see the 1.2850 level come into the picture to offer support as it was previous resistance. Underneath there, then we could see the 50-Day EMA come into the picture for support. It’s interesting to note that the 50-Day EMA is walking along the uptrend line, so it all comes together quite nicely for support.

If we were to turn around and go to the upside, the market will face a little bit of resistance near the 1.30 level. The 1.30 level being taken out to the upside opens up the possibility of a move to the 1.3150 level. Taking that out to the upside then allows the British pound to trade at the 1.3250 level given enough time. Ultimately, I think this is a market that will find buyers on dips, and that this pullback is probably going to be a nice buying opportunity. However, if we were to break down below the 1.2650 level, then we can start to look at something a little bit more important, and we could see the US dollar really start to pick up strength.

This is probably going to be more about the US dollar than anything else, so pay attention to the greenback against other currencies. While there could be a bit of US dollar strength, it’s worth noting that the British pound has been one of the better performers against the greenback lately, so therefore this pair will probably be quite a bit more stubborn than many others to break down. I’m waiting for some sign of support to get involved and start buying again, but I will let other traders in the market try to front run that move, and just simply follow them after they put money to work.

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