GBP to USD Forecast – British Pound Gets Bullish Again on Wednesday

GBP to USD Forecast Video for 19.01.23

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit during the Wednesday trading session to break above the 1.23 level. At this point, does look like we are going to get to the 1.2450 level, an area that has been important previously. I believe that there is more likely than not going to be a lot of resistance above there to reach toward the 1.25 level. If we can clear that on a daily close, then the British pound will almost certainly go much higher. Ultimately, this is all about the Federal Reserve and whether or not it is going to continue to loosen its monetary policy, at least in the eyes of traders.

The reality is that they are not going to, but at the end of the day, the market has already decided that it wants to short the US dollar. How long this last, I do not know but right now it’s obvious that there is plenty of upward momentum in most currencies against the US dollar, so I don’t see why the British pound would be any different.

It should also be noted that the size of the candlestick is important to pay attention to, as it does show that there is a real chance that we have a lot of follow-through. If we pull back from here, then we have the 200-Day EMA sitting right around the 1.21 level offering support. After that, we have a 50-Day EMA that has just broken above the 1.20 level, sitting in position to break above the 200-Day EMA, and form the so-called “golden cross.” Because of this, I think there are plenty of buyers underneath looking to get involved on dips.

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