GBP to USD Forecast Video for 13.03.23

British Pound vs US Dollar Weekly Technical Analysis

The British pound initially plunged during the week to show signs of weakness, reaching down to the 1.1850 level again. This is an area that previously had been support, so the fact that we held there is a good sign. However, it’s also worth noting that we have seen a lot of choppy and noisy behavior as of late, and most of this reaction was due to the Non-Farm Payroll announcement on Friday, perhaps showing a little bit of hesitation in wage pressure. With that in mind, I’m a little less likely to get bullish of the British pound that I would be under normal circumstances, especially as the preceding candlesticks were all inverted hammers.

I do believe eventually the British pound falls apart, and goes looking to lower pricing against the US dollar, but right now we might be settling on some type of short-term consolidation. If that’s going to be the case, keep in mind that markets can be extraordinarily choppy at times and you need to be cautious with your position size as a result.

If we were to break down below the bottom of the weekly candlestick, then I think it opens up a move down to the 1.15 level, something that I do expect to happen sooner or later. With that, I would be increasingly aggressive to the downside. If we do rally from here, I think there’s a lot of noise near the 1.21 level and the 1.2250 level where the 50-Week EMA currently resides. Either way, volatility is going to be a major issue.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE:

• S&P 500 Weekly Price Forecast – Stock Market Has a Tough Week Again

• GBP/JPY Forecast – British Pound Falls to Test Major Moving Averages

• USD/JPY Forecast – US Dollar Gives Up Early Gains Against the Japanese Yen

• GBP/JPY Forecast – British Pound Continues to Threaten Japanese Yen

• AUDUSD Forecast – Australian Dollar Slams Into Recent Resistance

• GBP to USD Weekly Forecast – The British Pound Has a Wild Week