Technical Analysis of GBP and How Will It Perform Against USD
January 8, 2023GBP has seen a gain in momentum as the new year begins. Talk GBP/USD pair, the pair has recently crossed a key level of resistance at 1.1991.
At this moment, the pair is sitting beyond this level. Experts are hopeful that GBP will go further higher if the pair somehow managed to maintain the current level of resistance at 1.1991.
Experts are hopeful for the strong bears regarding the future range of trade of the GBP/USD pair. Although bulls might grow stronger. But the current EMA is still standing below the 100 EMA meaning bulls might be short-lived.
This shows that GBP/USD will see upcoming levels of resistance at 1.2077 and 1.2163 respectively.
Experts Are Hopeful for Further Gains in The Rise of GBP/USD
Experts are certain that GBP/USD is very close to replicating the double top means now is the best time for investors to invest in GBP in particular.
Experts are also pushing investors to buy when the GBP/USD pair is at 1.19991, the next move will be up on 1.2077 and 1.2163 respectively.
On the other hand, if somehow the GBP/USD pair failed to maintain the market support at 1.1991, then things can go against expectations. This means the pair can go below the 1.19991 level to 1.19949.
In case the decline emerges, the market can go under strict bearish pressure. However, chances are very few that the bears might dominate the market.
Experts do believe that bulls are most likely to rule the market which means the GBP/USD pair is in the safe zone.
The Future of GBP
As the trading returns after the start of the new year. The market continued from a bit higher than the daily pivot point and then the overall volume moved back to the daily pivot point.
This shows investors can make a profit at R1, R2, and R3 respectively. The chances are relatively less for loss as the things stand.
Talking of the future of the GBP not only in the U.K. but outside the UK, the performance of the GBP will solely rely on the economic outcomes and market sentiment related to risk.
Following the U. K’s economic outlook, experts have voiced that the economic growth of the U.K. in 2023 will be slightly sluggish.
It is also expected that the price stability and rise in GBP’s price might also be sluggish for the start of 2023.
A look at the technical indicators of GBP/USD for Jan shows that it is targeting the resistance level at 1.211935. The indicators are positive for the pair.
Talk of February 2023, the pair is targeting the resistance level of 1.25534. Similar positive intent can be seen for March.
For April and May, the price of the GBP/USD pair can target the levels of resistance at around 1.26238 and 1.26963 respectively.
However, after the mid of 2023, the market is expected to be more stable and currency prices will become more stable.
The Overall Economic Outlook of the UK Will Also Play the Crucial Role
Currently, the account deficit has been a really big issue for the country. As the account deficit is mounting this could weaken the performance of the GBP if other indicators become further intense.
Economic outlooks such as high inflation, high energy cost, and high production cost, are the reason that U. K’s exports have been halted as a result the current account deficit has peaked.
The current strength in the price of GBP is toeing at vulnerable foundations. That is why experts are short-time bullish over GBP. But in the long run of time, experts are not sure about where the GBP will head.
The price of GBP can go either way above or below. Market bulls are also showing a short-term gain in the price of the Great Britain Pound.
Despite all these technicalities, one thing is certain 2023 is expected to be much better than 2023. The overall economic outlook is expected to be improved along with the currency market
