GBP to USD Forecast – British Pound Continues to Consolidate Against the Greenback

GBP to USD Forecast Video for 23.11.22

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit during the session on Tuesday, as we continue to see a bit of consolidation in this pair. Ultimately, it looks as if the 1.20 level above is a significant barrier that’s going to take a lot of work to get above. That makes a lot of sense because the Bank of England has already stated that the British economy is going to go into a two-year recession.

On the other side of the Atlantic, you have the United States which has a central bank that’s in tightening mode, but even after it slows down or even stops, it plans on being tight for quite some time. In other words, the US dollar will be much more attractive than the British pound over the longer term.

Above the 1.20 level you also have the 200-Day EMA, which of course is a technical indicator that a lot of people will pay attention to determine the trend. As long as we stay underneath there, a certain large portion of the trading public will think of this as being in a downtrend. In fact, I really don’t think it’s until we break above the 1.21 level that you can start to argue that the trend has changed.

Keep in mind that we had recently seen a lot of drama coming out of the UK due to budgetary concerns and had gotten far too oversold as we pierced the 1.05 level. We have raised the value of Sterling by 10 full handle since then, so the question now is whether or not it is a correction, or if it is the start of something more important. I believe 1.21 has the answer.

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