GBP to USD Forecast – The British Pound Pulls Back Into the Weekend

GBP to USD Forecast Video for 23.01.23

British Pound vs US Dollar Technical Analysis

The British pound has pulled back a bit during the trading session on Friday, as we continue to see a lot of resistance near the crucial 1.2450 level. That begins a significant amount of resistance all the way up to the 1.25 level at the very least, so I do think this is going to be a difficult area to get beyond. If we do, then it opens up a much bigger move to the upside, perhaps the 1.2750 level, and then followed by the 1.30 level over the course of time.

More likely than not, we get a bit of a pullback from here, as it looks like the US dollar is trying to flex his muscles yet again. The 200-Day EMA sits near the 1.21 level, so I think it all ties in for move down to that area before it’s all said and done. Ultimately, I think we’ve got to look at this through the prism of whether or not the market has the momentum to continue going higher at this juncture, especially as we have seen such a huge move to the upside, followed by a relatively shallow depth. In fact, you can even make an argument that we are starting to form something akin to a double top, so that’s worth paying attention to as well.

I expect to see a lot of support near the 200-Day EMA and the 1.20 level underneath, so I think this is a short-term pullback at the moment. However, if we were to break through all that, then I think the market is likely to continue much lower, perhaps down to the 1.16 level.

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