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GBP to USD Forecast – British Pound Continues to Sit on Support

Christopher Lewis
·2-min read

GBP to USD Forecast Video for 25.05.23

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 trading in general. Ultimately, this is a situation where we have some concerns, that the global economy may be struggling. If that’s going to be the case, then it certainly makes sense that the US dollar may attract a lot of attention. All things being equal, I think this is a situation where we still have a lot of support underneath near the 1.2350 level, and it is probably worth paying attention to. With that being the case, I think you got a situation where you will have plenty of buyers on the dip, at least at this point.

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On the upside, the 1.2550 level above should offer resistance, and therefore if we can get to that area, I suspect it will be difficult to break above there. However, if we do, then the market could open up a move to the 1.27 level. All things being equal, this is a situation where we continue to have a lot of noisy behavior, therefore you need to be cautious with your position sizing. However, even though we have had quite a bit of noise in this general vicinity, you probably need to look at this through the prism of a choppy and somewhat consolidated market.

If we were to break down below the 1.2350 level, then the 200-Day EMA sets right around 1.2250 underneath, and it could offer a lot of potential longer-term support. It is not until we break down below that indicator that I think traders would start to worry about the overall trend. Regardless, this is a market that I think will continue to be very noisy and of course move on the latest risk appetite movements of the overall global markets. With this, I think we’ve got a situation where noisy behavior is probably going to be the main theme, with a slightly upward trajectory.

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

This article was originally posted on FX Empire

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