GBP to USD forecast video for 08.03.23
British Pound vs US Dollar Technical Analysis
The GBP initially tried to recover in Tuesday’s trading session but returned to the upside showing signs of hesitation. At this point, it looks like we are trying to build enough pressure to drop below support. The market has continued to fail every time we get close to the 50-day EMA, so there’s a good chance that traders will continue to ease the recovery, taking advantage of the dollar’s strength. US dollars.
The 50-day EMA is also supported by the 200-day EMA, so I think there are quite a few different players looking to short this market every time it tries to rally. Ultimately, this is a situation where if we can break below 1.1850, the market is likely to drop to 1.15 below. 1.15 is a big, well-rounded number that is psychologically significant and an area where we’ve seen a lot of noise in the past. The previous resistance will now be supported.
On the other hand, if we turn around and remove the 200-day EMA, there is a chance we can go to 1.23. Then we have the 1.25 level above, that’s where we have the double top, which starts at 1.24. Ultimately, this is a market that I think will continue to see a lot of buzz, but I also believe it is a market with large overhangs, and therefore it will be difficult for it to move higher. again.
Furthermore, the Federal Reserve will maintain tighter policy for a longer period of time when it comes to monetary policy, and so it is likely that we will see the overall US dollar continue to be strong. go up. All things being equal, this is a situation where we continue to see a lot of downward pressure on each bull run, and therefore I would taper off at the first sign of burnout. It is true that support has held up pretty well so far, but it is only a matter of time before it gives way to all this growing pressure.
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This article Originally posted on FX Empire