GBP/USD Weekly Forecast – British Pound Breaks the Resistance

GBP to USD Forecast Video for 17.07.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has broken above the 1.30 level during the trading week, opening up the possibility of a bigger move. All things being equal, this candlestick has been extraordinarily bullish and that it suggests that a pullback opens up the possibility of a value trade, so on a short-term pullback, I think there will be plenty of buyers that will come into the picture. The 200-Week EMA sits right around the 1.28 level, as the area should be very important. All things being equal, if we break above the top of the candlestick for the week, then it’s possible to go to the 1.3250 level, and then possibly the 1.35 level after that.

The size of the candlestick was rather important, as it shows just how much momentum there is into the market, and therefore I think we’ve got a situation where eventually we will continue to go higher, but I’m looking for some type of value in order to take advantage of the momentum. That being said, if we were to turn on a break down below the bottom of the candlestick for the past week, the market then goes down to the 1.2650 level. The 1.2650 level is an area where we break through, sellers will jump into the market and try to push the British pound down to the 50-Week EMA which is closer to the 1.2350 level. In general, I don’t see that happening, but it is possibly a situation we could find ourselves and if the Federal Reserve shocks the market or convinces the market that it is going to keep monetary policy type.

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