GBP/USD Weekly Forecast – British Pound Pulls Back From 200-Week EMA

GBP to USD Forecast Video for 26.06.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has pulled back during the course of the week, after initially touching the 200-Week EMA. This is interesting, considering that the Bank of England raised interest rates by 50 basis points this past week, instead of the expected 25. In other words, you would have thought that the market was going to take off to the upside, but clearly had not. With this, we now start to focus on the 1.2650 level, which was an area of significant resistance previously, and now is significant support. With this, I think it’s probably only a matter of time before you get some type of reaction.

Even if we don’t, there is another support level near the 1.2350 level, which is also where the 50-Week EMA hangs about. That obviously would be an area of support as well, and therefore I think you would have to think that the market would eventually find buyers in that region. However, if we were to break down below that level, then there’s a real chance that the market breaks down for a longer-term move.

That being said, if we turn around and take out the highs of the last couple of days, then it’s likely that we go looking to the 1.30 level, which is my target longer-term, unless things change. That being said, the fact that we broke down after the surprise interest rate does perhaps give me a lot of concerns, due to the fact that the market did the exact opposite of what you would expect. In general, this is a situation where we have to be very cautious, but we do have these levels of pay close attention to.

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