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GBP/USD Weekly Forecast – British Pound Attempts a Breakout

By:
Christopher Lewis
Published: Nov 17, 2023, 15:52 GMT+00:00

The British pound has rallied significantly during the course of the trading week to break above the top of the parish flight pattern that we had been in.

British Pounds, FX Empire

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GBP to USD Forecast Video for 20.11.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has rallied significantly during the course of the week, testing the 50-Week EMA, and breaking above the top of the bearish flag that we had been in for so long. This of course is a very bullish sign, but it’s also probably worth noting that the 50-Week EMA sits right in the same area, and it does make a certain amount of sense that we would see this market a bit confused at this point. If we can break above the top of the candlestick though, that would be a very bullish sign, perhaps opening up and move to the 200-Week EMA.

Alternatively, if we break back down below the 1.23 level, then it opens up a move down to the bottom of the candlestick, but I don’t necessarily see that happening very easily. I think at this point, we probably have more volatility and chop than anything else, which at this point in time you should be familiar with due to the fact that markets have been schizophrenic at best all year. Traders are still trying to sort out whether or not the Federal Reserve is going to come save everyone, and for the most part are ignoring the economy. The only time they pay attention to the economy in either country is whether or not it gives the Fed reason to pause.

This is the big fight that we are in right now, and it is going to continue to be very difficult. Nonetheless, I think you’ve got a situation where it is probably only a matter of time before buyers come in and try to pick this market up, if for no other reason than habit.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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