Forecast for GBP/USD Exchange Rate – British Pound Strengthens on Wednesday
- Shams ul Zoha
- January 18, 2023
- 8:37 pm
WHAT YOU SHOULD KNOW
- On Wednesday, the British pound experienced a slight increase in value, surpassing the 1.23 level and potentially reaching the 1.2450 level
- The British pound has the potential to rise significantly if it can maintain a daily close.
- The market has already taken a stance to short the US dollar.
On Wednesday, the British pound experienced a slight increase in value, surpassing the 1.23 level. It appears that we are likely to reach the 1.2450 level, which has been significant in the past. There will likely be a lot of opposition to the idea of reaching the 1.25 level.
The British pound has the potential to rise significantly if it can maintain a daily close. In the eyes of traders, the ultimate question is whether or not the Federal Reserve will continue to loosen its monetary policy. It is a fact that the market has already taken a stance to short the US dollar, regardless of whether or not it will actually happen.
It is unclear how long this trend will continue, but currently, many currencies are gaining strength against the US dollar. Therefore, it is likely that the GBP will follow suit.
The 200-Day Exponential Moving Average (EMA) currently provides support at the 1.21 level. The 50-Day EMA has recently crossed the 1.20 level, indicating that it could soon break above the 200-Day EMA and form a “golden cross”. This suggests that there are likely buyers waiting to purchase on price dips.
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