GBP/USD Weekly Forecast – British Pound Shows Hesitation

GBP to USD Forecast Video for 31.07.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has gone back and forth during the course of the trading week, as we are hanging above the 200-Week EMA, an area that obviously will attract a lot of attention from a technical standpoint. That being said, it’s also obvious that the 1.30 level above offers a significant amount of resistance, but we have been above there previously. In other words, I think it would very likely slice through there if we get a little bit of upward momentum.

That being said, it’s likely to continue to be more or less a “buy on the dips” type of market, at least until we break down below the 1.2650 level. If that level gets broken to the downside, then we could very well go down to the 50-Week EMA, closer to the 1.24 level. Regardless, I think this is a situation where we probably are setting up for a bit of volatility, and therefore I anticipate more sideways action than anything else. The market will continue to be very difficult to trade from a longer-term standpoint, but if we do break above the highs of the last couple of weeks, then the British pound has a real shot at going to the 1.35 handle.

More likely than not, you will have to base your trades off of a shorter-term chart, perhaps trying to trade back and forth in a range bound manner. If you’re a longer-term trader, you have to look at this through the prism of the market that’s obviously a bit overstretched, so we will have to work off some of the excess froth in the British pound.

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