GBP/USD Forecast – British Pound rallies to the 200-Day EMA After CPI Numbers

GBP/USD Forecast Video for 15.11.23

British Pound vs US Dollar Technical Analysis

The British pound has rallied significantly during the trading session on Tuesday, as we have reached toward the 200-Day EMA simply just after the CPI numbers came out of the United States. By doing so, it suggests that the US dollar might be on the back foot in the short term, as inflation is cooling, and traders will certainly start to run with the narrative that the Federal Reserve is going to pause its rate hiking cycle. That being said, this is the game we have been playing for a while, and there are also concerns about geopolitical problems, which of course can help the US dollar as well.

All of that being said, in the short term it looks like we are seeing a major turnaround, and now we will have to pay close attention to the 200-Day EMA indicator, and the shooting star from last Monday which showed a significant amount of resistance. We slammed into a major resistance barrier, so now the question is whether or not we can break through it? If we do, meaning that we break above the top of the Monday shooting star from last week, then it’s possible that the British pound has much further to get out. At this point, we are stretching the boundary of the bearish flag, and therefore a lot of questions will be asked.

If we turn around and breakdown below the 50-Day EMA, that would be an extremely negative turn of events, but at this point I think the most important thing you can do is step to the side and see whether or not this is an actual breakout or if it’s just a short-term rally that is ready to be sold into. At this point, you need to let the market let you know what it’s going to do next. After all, if we are going to change trends, you don’t need to capture all of the pips, just a majority of them. A little bit of caution probably goes a long way at this point, and therefore I think you got a situation where the patient trader will be rewarded.

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