Tuesday, 30 May 2023 02:20 GMT

GBP/USD Forecast: Sterling Looks For A Longer-Term Direction

(MENAFN- Daily Forex)
  • The British pound displayed a back-and-forth movement during Wednesday's trading session, reflecting the ongoing noise and volatility in the market.
  • Concerns about the global economy's challenges may lead to increased attention on the US dollar.
  • However, there is still significant support around the 1.2350 mark, which deserves attention.

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Consequently, buyers will likely emerge on any dips, at least for now. However, this situation continues to be in flux, and it makes a lot of sense that the gbp/usd currency pair will continue to be a mess at times. The market will continue to favor reacting as a barometer of risk appetite more than anything else. On the upside, the 1.2550 level is expected to act as resistance. If the market breaks above this level, it could open the door for further gains toward the 1.27 level. However, breaking above the resistance may be difficult considering the current circumstances. Despite the noise and volatility, it is crucial to approach this market cautiously and consider appropriate position sizing. The choppy and consolidated nature of the market suggests the need for vigilance.

In the event of a breakdown below the 1.2350 level, the 200-Day EMA at 1.2250 could serve as strong long-term support. Only if the market breaches this indicator would traders begin to worry about a shift in the overall trend. However, it is important to note that the market will likely remain volatile and influenced by global market risk appetite trends. As a result, we can expect continued noise in the market with a slightly upward trajectory. However, there may be an occasional selloff that could cause problems, but until we break down enough – it still looks likely to eventually attract buyers.

In the end, the British pound exhibited a back-and-forth movement, reflecting the overall noise and volatility in the market. Concerns about the global economy and the potential attraction of the US dollar are factors to consider. However, the market still maintains a level of support of around 1.2350, attracting buyers on dips. Resistance is expected at 1.2550, and breaking above that level could open the possibility of further gains. It is crucial to exercise caution and carefully manage positions in this choppy and consolidated market. The 200-Day exponential moving average (ema) at 1.2250 provides longer-term support, but any breakdown below that level would raise concerns about the overall trend. Despite the noise, the market will likely maintain a slightly upward trajectory.

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