GBP/USD Weekly Forecast – British Pound Looks Choppy

GBP to USD Forecast Video for 31.10.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has been back and forth most of the week against the US dollar as it looks like we are trying to work off a lot of froth near the 1.2150 level. Underneath, the 1.20 level underneath will be a significant support level, as it is a large, round, psychologically significant figure. If we were to break down below there, then it opens up the possibility of a move down to the will 1.1850 level, which is a much more major support level that we have seen tested last winter.

If we can break above the 1.2350 level, then it’s likely that the market could recover quite a bit, but that would take a shift in risk appetite, and of course a shift in what the Federal Reserve is doing in America. After all, the US dollar is buoyed by higher interest rates, and of course a run toward safety. I think that continues to be the case, so I do like the idea of shorting this market every time it rallies, but it might be difficult to do on a longer-term charge. If we were to break down below that crucial 1.1850 level underneath, the British pound could find itself slipping down to the 1.15 level rather quickly.

The only thing I think you can count on at the moment is that we are going to be very choppy, and of course noisy. With that being the case, you need to be very cautious with the idea of position sizing and therefore it makes quite a bit of sense that the prudent trader will keep his size a bit smaller at the moment.

For a look at all of today’s economic events, check out our economic calendar.