GBP to USD Forecast Video for 03.04.23
British Pound vs US Dollar Weekly Technical Analysis
The British pound has rallied significantly during the trading week to slam into the 1.24 level, this is a large, round, psychologically significant figure, but more importantly it is an area that has already proven itself to be resistance that extends all the way to the 1.25 level.
The size of the candlestick is somewhat impressive, and it did break the top of a shooting star, suggesting that we are going to see more overall buying pressure. Having said that though, we are still in an area that should offer quite a bit of trouble, and therefore I don’t necessarily think we are ready to go to the upside quite yet. However, if we were to break above the 1.25 level, then it opens up the possibility of a move to the 1.2650 level.
If we do break down from here, the market will more likely than not see a potential move back to the 50-Week EMA, down to the 1.22 level. This is a market that continues to see a lot of volatility in general, because we do have quite a bit of inflation in both countries. However, if interest rates in America start to rally again, then we will almost certainly see some type of selloff. On the other hand, if we do rally, it will more likely than not have to do with the bond markets more than anything else.
If we do break down below the 50-Week EMA, then it opens up the possibility of a move all the way down to the 1.1850 level, the bottom of the overall consolidation that we have seen for the last couple of months. Ultimately, this is a market that continues to be noisy, but we are at the top of an overall range.
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:
- DAX in the Hands of German and US Manufacturing Sector PMIs
- EUR/USD and a Slide to $1.0750 in the Hands of Manufacturing PMIs
- Five Things to Know in Crypto Today: Crypto Market Jumps 53% in Q1
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.