GBP/USD Weekly Forecast – British Pound Bounces From Extreme Lows

GBP to USD Forecast Video for 02.10.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound fell significantly during the course of the week but found buyers on both Thursday and Friday to turn things around. Whether or not we can continue to bounce from here remains a completely different question, but a short-term rally would make a certain amount of sense. The 1.2350 level above should continue to be a major resistance barrier, as it was previous support. With this being the case, it looks like the market is going to continue to see that as an area that is worth paying attention to, and if we break above there, then we can see the British pound start to take off again. That being said, I think it’s probably more likely than not that we see sellers in that area.

If we turn around and break down below the bottom of the candlestick for the week, then it opens up a move down to the 1.1850 level, which I believe is the destination at the moment. It’s also a major area of support in the past, so I think that’s also worth noticing. Anything below that level then really opens up the trapdoor in this pair, but it looks to be like we are getting a little oversold, so I would like to see some type of rally that I could sell into.

Expect short-term rallies, but look at those as potential selling opportunities. It’s not until we break above the 1.2350 level that I take a rally seriously, and even then I have to take a look at the bond market and determine whether or not yields are dropping significantly in the United States to make this happen.

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