GBP/USD Forecast – British Pound Pulls Back

GBP/USD Forecast Video for 16.11.23

British Pound vs US Dollar Technical Analysis

The British pound has pulled back just a bit during the trading session on Wednesday, as we continue to see a lot of noisy behavior. At this point, we will have to pay close attention to the 200-Day EMA underneath, because it is not only a major technical indicator, but it is also at the top of the previous bearish flag. In other words, this is an area where we could see a lot of interest in the market, so we will have to pay close attention to it. If we break down below the 1.24 level, then it opens up a huge move potentially, perhaps dropping down to the 1.23 level.

On the other hand, if we turn around and show signs of life at the 1.24 level, then we could go look into the 1.25 level above, or perhaps break above the 1.25 level in order to get a look into the 1.2750 level, which is the top of the bearish flag that we just have broken out of.

In general, this is a situation where we continue to see a lot of noisy behavior, and of course traders around the world are paying close attention to the interest rate situation in the United States. With the CPI numbers during the trading session on Tuesday coming out cooler than anticipated, we have seen the US dollar crushed. However, the PPI numbers during the trading session on Wednesday have completely flew in the face of those numbers, so obviously we have a lot of confusion at the moment.

The next day or 2 are going to be crucial, but I will be paying close attention to see whether or not we can break higher and close on a daily candlestick higher, because at that point in time I would believe in the momentum to the upside. However, if we close below the 200-Day EMA, then I would go ahead and take a shot at the downside, looking to reach the 50-Day EMA, perhaps even the 1.21 level before it is all said and done. Expect a lot of volatility.

For a look at all of today’s economic events, check out our economic calendar.