GBP to USD Forecast – British Pound Stalls
GBP to USD Forecast Video for 27.01.23
British Pound vs US Dollar Technical Analysis
The British pound has stalled during trading on Thursday as we got the GDP numbers out of the United States coming in line as expected. At this point, it looks like we are trying to find some type of reason to move, but we just don’t have it yet. When I look at this chart, I’m very cognizant of the fact that we could be in the midst of forming a bit of a double top, based upon the 1.25 level. That’s obviously a large, round, psychologically significant figure, and an area that I think you have to pay close attention to.
Any move above that area would obviously be very bullish, as it would attach a certain amount of psychology to the market. At this point, I think it’s quite obvious that the market has been very noisy over the last couple of days, so whether or not we can breakout still remains to be seen. Remember, there are serious concerns when it comes to the UK economy, because although they have a lot of inflation, they have to worry about a lack of growth.
From a technical analysis standpoint, the 50-Day EMA sits underneath and is trying to cross above the 200-Day EMA to form the so-called “golden cross.” This indicators followed by longer-term “buy-and-hold” types, so it’ll be interesting to see how this plays out. Ultimately, I think this is a situation where you have a lot of momentum, that is suddenly meeting a brick wall. We have the Federal Reserve meeting and statement next week that will have a lot to say about where the US dollar goes next. I anticipate that Jerome Powell will try to squash enthusiasm.
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This article was originally posted on FX Empire
