GBP/USD Forecast – The British Pound Does Little on Monday

GBP/USD Forecast Video for 04.07.23

British Pound vs US Dollar Technical Analysis

The British pound initially pulled back during the trading session on Monday, but then turned around to show signs of life again. By doing so, it looks as if the market is doing everything it can to continue going higher, which would be a simple continuation of everything that we had seen up to this point. After initially pulling back, the market then broke above the top of an inverted hammer late last week, which is one of my favorite long signals.

The 50-Day EMA sits just below, and it should offer a certain amount of support for this market. Given enough time, I fully believe that this is a market that will do everything it can to continue going higher, as the US dollar is taking it on the chin in various pairs during the day. That being said, keep in mind that the Tuesday session is Independence Day in the United States, so there will be a certain lack of liquidity that you have to deal with. Nonetheless, this is a market that I think you will eventually continue to see upward pressure, and therefore by the end of the week I anticipate that the market will be higher than it is right now.

Underneath, we have the 50-Day EMA coming into the picture also, and therefore I think we’ve got a situation where that could offer a bit of dynamic support. After all, it is a widely followed technical analysis indicator, and I think a lot of people will be looking to find “cheap British pounds” if they get the opportunity. Whether or not they get that opportunity remains to be seen, but I certainly think that given enough time they will. With this, I’m looking at more of a “buy on the dips” strategy, as we move forward. The market is one that I have no interest in shorting, because it has been one of the better performers even in times when the US dollar picks up a bit of strength. With that, I’m waiting for an opportunity and will be pulling the trigger on each dip to add to a bigger position.

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