GBP to USD Forecast – The British Pound Gives Up Early Gains for the Monday Session

GBP to USD Forecast Video for 20.12.22

British Pound vs US Dollar Technical Analysis

The British pound initially tried to rally during the trading session on Monday, but gave back gains above the 1.22 level, as it is struggling for momentum. With that being the case, the market is likely to continue to see a lot of trouble, and therefore if we were to break down below the 200-Day EMA, is very possible that the market may start dropping to the 1.20 level.

Breaking down below the 1.20 level opens up the possibility of testing the 50-Day EMA. The 50-Day EMA of course is an area where a lot of people pay close attention to, so that can also be supportive as well. Alternatively, if the market were to take off and break above the 1.2250 level, then we could see the market try to test the highs again. Keep in mind that the massive candlestick from last week showed a lot of negativity, which is typically the type of candlestick that I think it’s a bit of follow-through. I understand that we are fighting with the 200-Day EMA, so you can make an argument for either direction, but it certainly looks as if the market is getting “tired” in this general vicinity.

I do believe that this is a market that will continue to be very noisy in general, as is the case with the British pound just about everywhere. With that being the case, I do think a pullback is likely, but I also recognize that it is holiday trading that we are looking at, meaning that we probably will have very little in the way of clarity.

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