Yahoo Finance GBP to USD Forecast – British Pound Continues to Consolidate In the Same Noisy Region
GBP to USD Forecast Video for 20.04.23
British Pound vs US Dollar Technical Analysis
The British pound has gone back and forth during the trading session on Wednesday, as we continue to see a lot of noisy behavior. Ultimately, this is a situation where I think that the British pound is going to continue to look at the 1.25 level as a major barrier to overcome, so if we were to break above that level it’s likely that the pair will continue to go much higher.
On the downside, if we were to break down below the 1.23 level, that could open up a much bigger move to the downside, perhaps kicking off a somewhat significant selloff. I think at that point in time, the US dollar would start to become one of the strongest currencies in the world, due to the fact that the British pound had been so strong previously. The 50-Day EMA near the 1.23 level is a level that a lot of people will be paying attention to, and therefore I would expect to see quite a bit of a fight. However, if we were to break down below there then you almost immediately go looking for the 200-Day EMA, which is closer to the 1.22 level.
At this point, the market looks as if it does favor the upside in the short-term, but that 1.25 level is a major resistance, and therefore I think if we do break above there, it is likely that we continue to go much higher. The market is very likely to continue to see a lot of volatility regardless, but if we do take off to the upside I think you may see more of a “beach ball being held under water” type of effect as we should spring higher. Ultimately, everybody wants to sell the US dollar, but it doesn’t look like we are going to have an easy path either way. As things stand right now, it is probably more of a “buy on the dip” type of situation longer term, but if we were to give back the gains and drop down below this moving averages, at that point anything could happen.
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This article was originally posted on FX Empire
