GBP/USD Weekly Forecast – British Pound Continues to Threaten Support

GBP to USD Forecast Video for 21.08.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has dipped a bit during the course of the week but has also recovered. It’s worth noting that the 1.2650 level is an area that we have been paying close attention to, and it looks like we are to simply consolidating. This does make a certain amount of sense considering that we are in the midst of vacation season, meaning that there’s probably a lack of volume out there that could come into the picture as well.

Just above, the 200-Week EMA comes into the picture to offer resistance so if we can break above there then I think it’s possible that the British pound can go to the 1.30 level above. Either way, I think you continue to see a lot of noisy trading, it may be difficult to trade this market for a longer-term move, at least at the moment. However, if we do clear that 200-Week EMA, it probably brings in a lot of fresh money.

On the other hand, if we break down below the lows of the last couple of weeks, that opens up a move down to the 50-Week EMA, which is closer to the 1.25 level. The 1.25 level of course will attract a lot of attention from a psychological standpoint, and therefore I think you need to be aware of the fact that a lot of buyers may come in and try to pick up the British pound. Either way, a lot of this continues to be about the fact that both of these currencies are relatively strong against most others, and that does continue to cause quite a bit of chopped movement at the moment.

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