GBP to USD Forecast – British Pound Gives Up Early Gains Again

GBP to USD Forecast Video for 28.12.22

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit early in the trading session on Tuesday, touching the 200-Day EMA at the 1.2113 level. However, he gave back all of those gains and it looks as if it is ready to fall toward the 50-Day EMA. The 50-Day EMA sits in the 1.1928 level, and the fact that we are between this two moving averages suggests that we are essentially killing time between now and the end of the year but it’s worth noting that the British pound did start to sell out before the holidays, so that could mean that we are looking at something that actually has some legs. If we break down below the 50-Day EMA, then I fully anticipate that the British pound could drop down to the 1.15 level.

On the other hand, we break above the 1.22 level, then it’s possible that we go look into the 1.25 level above. Anything above there would be extraordinarily bullish for the British pound, but I have no real belief that it is going to happen anytime soon. I suspect that we will get a bigger move in January, but until we get to that point I believe that we are just killing time. That’s probably going to be the case in general anyway, so looking at this I have no interest in trying to get too cute with this.

I do favor the downside more than the upside, mainly due to the fact that the Federal Reserve has reiterated its desire to remain tight for longer, and of course we have a lot of problems when it comes to the global economy. In that scenario, the US dollar almost always performs.

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