GBP to USD Forecast – British Pound Plunges After Jobs Number

GBP to USD Forecast Video for 06.02.23

British Pound vs US Dollar Technical Analysis

The British pound has fallen rather hard during the trading session on Friday, as the Non-Farm Payroll numbers came out at over 500,000 in the United States, signifying that inflation is far from dead in that country. Because of this, we are more likely than not going to continue to see plenty of US dollar strength going forward. We may have just seen the British pound top and form a double top at this point. It is probably a little early to say that, but certainly this will go a long way to make that happen. With that being the case, I think it’s probably only a matter of time before something rather ugly happens in this market.

The 1.20 level underneath should be a significant support level, so I certainly think that is a reasonable target. At this juncture, I anticipate that we have a scenario where the level will be a major battlefield, and if the British pound were to slip below there on a daily close, we could have a major drop at that point. In fact, I think we got a situation where you could go down to the 1.15 level.

On the other hand, there may be some narrative to make this market bounce a bit, but at best we would look at a sideways market to say the least. If we can somehow break above the 1.25 level, then it would obviously be very bullish, but I don’t see that happening anytime soon. With that being the case, I think we’ve got a situation where you have to look at rallies as potential selling opportunities in this market.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire