GBP/USD Forecast Video for 08.08.23
British Pound vs US Dollar Technical Analysis
The British pound has gone back and forth during the course of the trading session on Monday, as we continue to dance around the 50-Day EMA. The 1.2650 level is an area that I think a lot of people will pay close attention to, as we had previously seen it show significant support, as well as resistance in the past.
The markets continue to find plenty of buyers, and the market pulling back will more likely than not bring buyers into the picture, due to the fact that we will be between the 50-Day EMA and the 200-Day EMA indicators, right along with that trend line that we have seen be important multiple times. Because of this, this is a scenario where the markets will continue to be noisy, but I do think eventually tries to get to the 1.30 level above. The 1.30 level above is an area that has been very important, and therefore it’s likely that we will see a certain amount of resistance. Breaking through that could open up a massive move to the upside, and therefore become more or less a “buy-and-hold” type of situation. All things being equal, then we could open up a move to at least the 1.35 level above.
Regardless, I would anticipate seeing a lot of volatility, but the interest rate differential is almost nonexistent, so with that being the case it’s likely that the market becomes choppy but I do favor the upside in general due to the fact that the Bank of England was the latest to raise their rates. Nonetheless, as long as we don’t see some massive “risk off move”, then it’s likely that the pound will continue to go a bit higher, but I don’t necessarily think that it’s going to be some type of runaway train. I think it’s more or less going to be a “buy on the dips” scenario more than anything else, but you also have to be willing to take profit occasionally as I think the noise will continue to be a major factor here.
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This article was originally posted on FX Empire
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