GBP/USD Weekly Forecast – British Pound Slams Into Trendline

GBP to USD Forecast Video for 28.08.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has initially tried to rally during the trading week, but struggled and the 200-Week EMA to turn things around and show signs of ugly negativity. At this point, we are testing a major support region, and it’s possible that we could see a breakdown, but a lot of this is going to come down to how the market reacts to the Jackson Hole speeches. At this point, the market is likely to continue to see a lot of volatility, and therefore I think you need to be cautious with your position size.

That being said, if we do turn around and take out the top of the candlestick for this week, and perhaps even the one previous, that opens up a move to the 1.30 level. In the other direction, if the market breaks down below the lows of the week, then we could very well move down to the 50-Week EMA, near the 1.24 level.

In general, this is a situation where you need to be very cautious, but I do think that it is probably only a matter time before we get a bigger move. Once we do, it should have legs, as traders are coming back from holiday and putting serious money to work. In the meantime, it’s probably prudent that you keep your position size reasonable, and therefore you probably want to layer into any position that you are getting involved in. It’s been a nice run higher, but that doesn’t necessarily mean that we are ready to turn around right away. However, if Jerome Powell shocks the markets with a little bit of hesitation, that could send the US dollar much lower, and therefore the British pound much higher.

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