GBP/USD Weekly Forecast – British Pound Stabilizes

GBP to USD Forecast Video for 03.07.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound has been all over the place during the course of the week, as we try to figure out where we are going next. Ultimately, this is a pair that had recently tested the 200-Week EMA, only to pull back. Now we have recovered, and it suggests that there is going to be a significant amount of wherewithal to the British pound, as it continues to see a lot of upward momentum overall. All things being equal, I think we can break above the 200-Week EMA, we will almost certainly go to the 1.30 level rather quickly.

Underneath, if we break down below the bottom of the candlestick, then we could go looking to the 50-Week EMA, which is at the 1.2350 level, an area that has been important as both support and resistance previously. With this being said, it’s likely that we will continue to see a lot of noisy behavior, so I think this probably favors more of a short-term trading environment in the meantime, but it does look like it’s got a lot of resiliency when it comes to the upside. That being said, if we were to turn around break down below the 50-Week EMA, then it could send this market plunging. At that point, we can drop all the way down to the 1.1850 level.

Ultimately, this is a market that I think does look bullish, but you have to be very patient if you are waiting for a bigger move. Furthermore, it’s possible that the US dollar starts to swallow everything, and if that doesn’t do being the case, it will be any different here. With this, I believe that the market will continue to be choppy.

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