GBP/USD Forecast – British Pound Struggles With the 1.30 Level

GBP/USD Forecast Video for 28.07.23

British Pound vs US Dollar Technical Analysis

The British pound initially tried to rally a bit during the trading session on Thursday, touching the 1.30 level before pulling back. I think at this point we have a lot of volatility ahead, but we also have a lot of support underneath. With that being the case, I think it’s probably only a matter of time before the traders come back in and pick this up, especially now that we have gotten through most of the central-bank announcements for the week, which takes a lot of the volatility out.

Underneath, the 50-Day EMA comes into the picture to show support, and of course the uptrend line as well. With this, I think it is a market that is probably going to pull back and find a little bit of momentum or value to get things going. If we were to break down below the 1.2650 level, then I think you’ve got a situation where the market really starts to unwind. That being said, the US dollar has been suffering at the hands of most other major currencies, perhaps with the exception of the Japanese yen, and therefore I think we continue to see a lot of volatility in both directions. Nonetheless, there are a lot of concerns out there as to where the economy is going, and that has a major influence on where the US dollar goes.

For what it is worth, inflation in the United Kingdom continues to be a major issue, so it’ll be interesting to see whether or not there is going to be a run back to the British pound. Economies are starting to show signs of cracks under the ice, so that could make the US dollar more attractive, but we need to break down through all of that support in order to start selling off comfortably. If we do break down from here, I would anticipate a noisy move lower, and therefore you will need to be cautious with your position sizing, as there will be a lot of questions as to where we go next. Nonetheless, despite the fact that we have pulled back, we are still very much in an uptrend.

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