GBP/USD, GBP/CHF and GBP/JPY Forecasts – British Pound Attempting to Rise

GBP/USD Technical Analysis

The British Pound has been back and forth against the US dollar during early trading on Wednesday, as we are bouncing it around between the 50-day EMA and the 200-day EMA indicators. With that being said, the market is likely to continue to see a lot of choppiness and it’s probably worth noting that you have 2 central banks that are basically in the same boat here. Both probably have to worry about inflation a little longer than most people had anticipated, and this, of course, causes a little bit of trouble.

The 1.35 level above is significant resistance, as well as the 50-day EMA, so I think you do have a lot of overhead pressure. To the downside, we have the 200-day EMA offering support, but if we break down below there and we have multiple times, the 1.3250 level becomes interesting support.

GBP/CHF Technical Analysis

The British Pound is trying to rally against the Swiss Franc, and with the seemingly advancing overtures between the Iranians and the Americans, it could allow for some type of peace dividend, and therefore, maybe traders will start to shy away from the Swiss Franc. It’s probably worth noting that the interest rates in the United Kingdom are probably going higher while the Swiss remain stubbornly at 0&. So, with that, I think the carry trade is alive and well here, and I do think that people will continue to look at this as a buy on the dip market. Keep an eye on 1.06, though.

GBP/JPY Technical Analysis

The British Pound is rallying against the Japanese Yen for many of the same reasons that it’s rallying against the Swiss Franc. It’s a pure interest rate differential play. The 214 Yen level I think is your target right now. Short-term pullbacks all the way to 211 Yen are probably going to be bought into. I would like to get on the right side of the V pattern that forms on something like that, so I am watching this pair, and you, of course, do get paid at the end of every day via positive swap here as the carry trade is alive and well. Traders will be watching this pair because if it can break through the 215 Yen level, it could really take off to the upside.