Yahoo Finance GBP to USD Forecast – British Pound Pulled Back Toward Support
GBP to USD Forecast Video for 24.05.23
British Pound vs US Dollar Technical Analysis
The British pound has fallen a bit during the trading session on Tuesday to reach near the support level of 1.2350 level. The British pound has been one of the better performers for a while, and therefore it’s likely that we will continue to see buyers come back into the market eventually, as the general picture of the British pound has been one of strength, although the PMI numbers have shown a cooling of interest rates. That being said, inflation is still very high, so I suspect we will have a turnaround sooner or later. For that matter, we also have the American PMI numbers coming out later in the day. If they fall short of expectations, that will only turn the market around that much quicker.
Ultimately, this is a pair that will continue to see a lot of noisy behavior, and therefore I think given enough time we will probably see buyers come back to this market center later. Having said that, if we were to break down below the 1.2350 level, then it’s possible that the market could drop down to the 200-Day EMA. The 1.2250 level is roughly where the 200-Day EMA sits, therefore I think the situation is that eventually we will find the buyers jumping back into the market, so I like the idea of buying pullbacks in order to find value.
On the other hand, if we were to break down below the 200-Day EMA, we could see a significant shot lower, perhaps reaching down to the 1.1850 level underneath. On the other hand, if the market does turn around, it’s likely that the 1.2550 level could be targeted, an area that had been previous resistance. All things being equal, this is a market that is testing the bottom of an overall consolidation area, and therefore I think we’ve got a situation where we are simply testing the overall bottom of short-term trading, and then perhaps getting ready to turn around. That being said, it does look to me like the market is trying to figure out whether or not it’s going to stay in this range as I record the video.
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This article was originally posted on FX Empire
