GBP/USD Weekly Forecast – British Pound Continues to Consolidate Overall

GBP to USD Forecast Video for 14.08.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has initially tried to rally during the course of the week to test the 200-Week EMA before pulling back. The market certainly has a little bit of an uptrend line underneath that comes into the picture, and that is something that people will pay attention to. Breaking down below that trendline then opens up the possibility of 1.2650 offering support, but if that were to give way, then the British pound will more likely than not continue to fall from there.

If the market were to break above the 1.28 level on at least a daily close, then it’s likely that the market goes looking toward the 1.30 level above, which is a large, round, psychologically significant figure. That’s an area that has previously been resistance and therefore it does make a certain amount of sense that area would offer a little bit of selling pressure.

The British pound of course has done better than most other currencies against the greenback as of the last couple of months, and this makes sense considering that the Bank of England and the Federal Reserve both are looking very likely to see reasons to stay somewhat tight. In general, this is a market that I think continues to be very noisy so longer term traders will be paying attention to some of the levels I’ve mentioned, but I don’t necessarily know that they will be looking to get involved right away. All things being equal, I think you probably have to look at this through the prism of a shorter-term range bound type of market until it proves itself.

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