GBP/USD Weekly Forecast – British Pound Continues to Consolidate

GBP to USD Forecast Video for 23.10.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has gone back and forth during the course of the trading week, as we continue to see a lot of noisy behavior. What you do not see on the weekly chart is that the Thursday and Friday candlesticks are forming hammers, so it does suggest that we are going to rally a little bit. Ultimately, any short-term rally at this point in time probably opens up the possibility of shorting the market, but that’s probably going to be found on smaller time frames.

If we break down below the lows of the candlestick, then we start to pay close attention to the 1.20 level. A move below the 1.20 level is exactly what is needed for longer term traders to start shorting this market. At that point, the 1.1850 level is an area a lot of traders will be paying attention to as we had bounced from there previously. While I do think that eventually happens, it’s probably going to take some time.

On the upside, we have the will 1.2350 level offering a significant amount of resistance, and they do think at that point in time we would have a huge fight on our hands. This lines up nicely on the weekly and daily charts, so I think it all comes together for traders to pay attention to that area. A move above the 1.235 level opens up the possibility of an even bigger mover, and therefore I think you have to look at this through the lens of trying to find value for the greenback, as the interest rate differential continues to favor the United States. Furthermore, we have a lot of geopolitical concerns, which also makes the dollar attractive.

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