GBP/USD Weekly Forecast – British Pound Continues to Rally Significant

GBP/JPY Forecast Video for 10.07.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has rallied significantly during the course of the trading week, breaking above the 200-Week EMA. The market looks as if it is heading toward the 1.30 level, but it’s got a lot of resistance in the 1.2850 region. All things being equal, this is a situation where we will continue to see a lot of noisy behavior, but I do think given enough time we will have to make a bigger decision. Because of this, I think the market will continue to see this as a market that’s trying to break out, but whether or not it is mainly about the overreaction on Friday remains to be seen. The Non-Farm Payroll number of course came out lighter than anticipated, so that has had a bit of an effect. If we can break out above the recent highs of the last couple of weeks, then it opens up a move to the 1.30 level.

On the other hand, if we pull back from here we could look to find support near the 1.2650 level. The market has continued to be very noisy, and therefore I think you got a situation where we are either going to try to work off some of the excess froth, or simply consolidate. If we do break above the last couple of weeks, then it’s possible that we could have a run toward that 1.30 level, which of course is a large, round, psychologically significant figure. If we break above there, then the market could really continue to go higher.

Keep in mind that the Bank of England is very tight with its monetary policy, but at the same time the Federal Reserve seems to be going down the same path. There are enough people out there that believe the Fed will have to slow down that we see a little bit of an uptrend.

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