GBP to USD Forecast Video for 23.03.23
British Pound vs US Dollar Technical Analysis
The British pound has rallied a bit during the trading session on Wednesday as we are waiting for the FOMC meeting results. Obviously, the FOMC will have a major influence on what happens with the US dollar next, and therefore have a major influence on what happens with most major forex pairs. Currently, it looks as if we are getting close to the top of the range that we have been in, and therefore we will have to make some serious decisions. The 1.23 level sits just above, which is a short-term resistance barrier.
After that, then we have the 1.24 level, an area where we had formed a major double top, and therefore it will be interesting to see if that holds on any type of big move to the upside. The 1.24 level begins an area that extends to the 1.25 level, so it’s obvious that there are a lot of things above that could come into the picture and cause problems. Keep in mind that the market has been chopping back and forth for a while, and therefore one would have to assume that we could keep doing that.
The 200-Day EMA sits just below the 1.2150 level, with the 50-Day EMA sitting just below there as well. However, that’s not the bottom of the range that I’m looking at, and it extends all the way down to the 1.1850 level. All things being equal, this is a market that is more likely than not going to stay in this range, and as we are closer to the top than the bottom, unless we get some type of extraordinarily dovish statement or action out of the Federal Reserve, which could send the dollar plunging.
However, at this point it’s all speculation and we need to see what ends up being the case with the Federal Reserve and what they are going to do. With this, a lot of caution will be needed, but if the Federal Reserve raises interest rates by 25 basis points and sounds like they are still looking to fight inflation, one would have to anticipate that the double top above will hold.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Best Growth Stocks for April 2023
- Natural Gas Price Forecast – Natural Gas Markets Continue to Drift Lower
- New Home Sales Beat Expectations, SP500 Tests Session Highs
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.