GBP to USD Forecast – British Pound Sits on Top of 50-Day EMA
GBP to USD Forecast Video for 23.05.23
British Pound vs US Dollar Technical Analysis
The British pound has gone back and forth during the trading session on Monday, as we continue to see a lot of interest right around the 50-Day EMA, which of course is an important technical indicator that people pay close attention to. The 1.2350 level underneath continues to offer support as well, so with that being said, I think the market probably continues to find plenty of buyers in the short term. Whether or not we can break out remains a completely different question, but at this point it certainly looks like breaking down will be very difficult.
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If we were to break down below the 1.2350 level, then the market could go down to the 200-Day EMA, right around the 1.22 level. This is a huge technical indicator that a lot of people pay attention to and use it for a trend defining indicator. If we do break down below there, then the overall trend will start to fall. On the other hand, the market looks as if it is going to continue to see a lot of back and forth between the 1.2350 level on the bottom, and the 1.2550 level on the top. Because of this, I think it’s only a matter of time before we have to make a bigger move, and once we do, then it’s likely that we will see a bigger move just waiting to happen.
It is worth noting that the British pound has been extraordinarily strong compared to other currencies, so if there’s any currency at the moment right now that could really take the US dollar out of, it might be Sterling. Regardless, this is a situation where we see a lot of noisy back-and-forth trading in the short-term, so you do have to approach it as such. Pay close attention to the moving averages, because they could give you a bit of a “heads up” as to where we are going. If we break out to the upside, we could be moving toward the 1.30 level before it is all said and done. Either way, it is going to be very choppy and noisy.
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