GBP/USD Weekly Forecast – British Pound Skyrockets

GBP to USD Forecast Video for 27.11.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has shot straight up in the air during the course of the week as it looks like we are pricing in Federal Reserve rate cuts already. That being said, the market still has a lot to deal with to the upside, but it certainly looks as if it has a lot of fight in it, and I would not be selling this market anytime soon. This is a huge departure from what I previously thought, because quite frankly the economic reality doesn’t pan out.

That being said, it’s obvious that everybody is standing there with their hand out waiting for Jerome how to cut interest rates. He probably isn’t going to anytime soon, but it’s being priced in and at the end of the day, that’s the only thing that matters. The 200-Week EMA is above it near the 1.2750 level and the 61.8% Fibonacci level, so I think that’s probably the next destination. Regardless, keep in mind that we are heading into the month of December when liquidity becomes a major issue, so that could also come into play as well.

Either way, it looks like the follow-through of the breakout of the previous trendline is getting a lot of momentum, and therefore I don’t think we are going to see this market break down significantly anytime soon. Do I like the pound? Not particularly, but at the end of the day it doesn’t matter what you like, it matters where the market is going. Trust your eyes, not the data because quite frankly that seems to be what’s going on at the moment with most traders.

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