The British Pound Continues to Consolidate

British Pound vs US Dollar Technical Analysis

The British pound initially dipped during the trading session on Friday, levitating near the 1.3050 level. It was Good Friday, so liquidity would have been a major issue. With that being the case, the market is more likely than not looking very much like it did during the previous couple of weeks, simply consolidating with the 1.30 level underneath being a massive support level. The 1.30 level begins a massive support area down to the 1.28 level. I anticipate that a lot of the noise underneath will continue to be difficult to chew through, and it will more likely than not come down to the US dollar.

The 1.3150 level above is a short-term resistance barrier, but it is also backed up by the 50 Day EMA. The overall downtrend will continue until we can break above the last significant peak. Because of this, the market will continue to see exhaustion as an opportunity to get short. The US dollar is looking likely to continue strengthening against most currencies, but it is worth noting that the British pound has been a little bit more resilient than some of the other currencies out there.

As long as interest rates continue to rise in the United States, that drives up demand for the US dollar. So does the significant risk appetite destruction, as there are a lot of concerns around the world and when it comes to that situation, it is likely that the US dollar will continue to be used as a safety valve for investors and traders around the world. That being said, if we were to take out the 1.33 level to the upside, then I would start to look at this through the prism of a “double bottom.”

GBP/USD Price Forecast Video 18.04.22

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