Yahoo Finance GBP to USD Forecast – British Pound Pulls Back to Support
GBP to USD Forecast Video for 01.06.23
British Pound vs US Dollar Technical Analysis
The British pound has pulled back just a bit during the trading session on Wednesday, as the 50-Day EMA has offered a bit of resistance. At this point in time, it looks like the 1.2350 level is an area that a lot of people have been paying attention to, and of course we are between that 50-Day EMA and the 200-Day EMA indicators, and that typically means that we are going to see a lot of noisy behavior.
This does make a certain amount of sense, due to the fact that we have seen a lot of questions when it comes to the overall global economy. It’s probably worth noting that the European Union is starting to drift into recession, and therefore one would think that the United Kingdom may do the same. Furthermore, you should also keep in mind that if there is going to be some type of major problem in the global economy, quite often the US dollar as the beneficiary.
If we do breakdown below the 200-Day EMA, it also means that we have broken down through an uptrend line, so that also adds more credence to the idea of the market going lower. In that general vicinity, you would open up the possibility of dropping down to the 1.1850 level, an area we had bounced off from previously. Ultimately, breaking down below that level would open up a huge selloff potential. Either way, it certainly looks as if we need to pay close attention to any breakdown at this point, because it could really start to move things.
Rallies at this point in time will have to deal with the 50-Day EMA, and then of course the 1.2550 level. That’s an area that has been resistive a couple of times in the past, and therefore it’s likely that we have sellers up near that level, and it could be a bit of the ceiling in the market. All things being equal, breaking above that area could open up a move toward the 1.30 level, something that remains to be seen whether or not it can happen.
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This article was originally posted on FX Empire
