The British Pound Continues to Threaten the Same Support Level

British Pound vs US Dollar Technical Analysis

The British pound has gone back and forth during the course of the trading session on Tuesday as we continue to threaten the 1.30 level. The 1.30 level has been a major support level multiple times over the last several weeks, and of course, is an area where we had seen a lot of support and resistance multiple times throughout the years. Beyond that, it is a large, round, psychologically significant figure, so it all comes together to set up an area that is going to be difficult to break through.

If we do break below that level, then it is likely that we go looking to reach the 1.28 level, but that is an area of a lot of noise between the two areas, so it does make sense that it would be more of a grind lower than anything else. Rallies at this point in time should continue to see plenty of resistance, so as you can see the market has been forming “lower highs. Furthermore, you have the 50 Day EMA coming into the picture as well, which should be significant resistance if we do try to reach that area.

If we were to break above the 1.3250 level, then the market is likely to go higher. At that point, the market more than likely goes looking to the 1.3350 level. Ultimately, this is a market that will have to make a bigger decision about this massive level, so it will be interesting to see how this plays out. In general, I believe that it is probably only a matter of time before we make a bigger move, but let the market decide for you.

GBP/USD Price Forecast Video 20.04.22

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