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GBP to USD Forecast – British Pound Forming Possible Double Top

GBP to USD Forecast Video for 25.01.23

British Pound vs US Dollar Technical Analysis

The British pound has fallen during the trading session on Tuesday, as it looks like we are trying to form a bit of a double top near the 1.2450 level. This is an area that’s been important in a couple of times, and it does make a certain amount of sense that we would see selling pressure in this area, because the 1.25 level will continue to be noise as well. The 200-Day EMA is closer to the 1.2135 level, and could be the potential target if we continue to see negativity. Remember, the British pound has been underperforming lately, so it might not be a huge surprise to see that it’s the first currency to start falling against the dollar.

That being said, I’m not necessarily looking for some type of meltdown. I do believe that the 1.20 region is going to be very difficult to break down. If we did though, that would confirm the double top and the “M pattern”, which of course is a great signal that the trend is changing yet again. When you look at the longer-term trend, that would set this up as a nice pullback in a bear market, and then a potential continuation move.

Alternatively, if we were to turn around and take out the 1.25 level, something that I don’t see happening in this next 24 hours, then it would be a very bullish sign, and could send the British pound to go looking toward the 1.2750 area for a target. Either way, I do think that we have a lot of volatility coming, especially with the economy in the UK showing high inflation and low growth.

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

This article was originally posted on FX Empire