Pound Sterling sellers flexed their muscles amid persistent demand for the safe-haven US Dollar, as the uncertainty over the US debt-ceiling issue sapped investors’ confidence. GBP/USD extended its corrective downside into the third week, despite the hot inflation data from the United Kingdom. The focus now shifts toward the all-important United States Nonfarm Payrolls data and US debt-ceiling updates for a fresh direction in the major. In this article, we’ll detail GBP/USD Weekly Technical Forecast for Week 22, 2023.
GBP/USD Technical Outlook
From a short-term technical perspective, GBP/USD remains exposed to more downside risks. Meanwhile, the 14-day Relative Strength Index (RSI) still holds comfortably below the midline.
The pair extended its correction and gathered downside traction following a sustained break below the critical upward-sloping 50-Day Moving Average (DMA), now at 1.2435.
Pound Sterling bears now need a daily closing below the mildly bullish 100 DMA support at 1.2287 to unleash further declines. The next relevant cushion is envisioned at the March 24 low at 1.2190. Additional declines will call for a test of the 1.2000 psychological level.
Alternatively, Pound Sterling buyers could stage a decent comeback toward the above-mentioned 50 DMA support-turned-resistance at 1.2435 should the 100 DMA support guard the downside.
Ahead of that, the 1.2400 level could challenge the bearish commitments on the road to recovery. Recapturing the 50 DMA barrier is critical to resuming the previous uptrend toward the downward-sloping 21 DMA at 1.2493.
GBP/USD: Forecast Poll
The Instaforex Nigeria Forecast Poll’s outlook suggests that GBP/USD could have a hard time finding direction in the near term. Meanwhile, the one-month and one-quarter outlooks both paint a bullish picture.
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