British Pound vs US Dollar Technical Analysis
The British pound has broken down significantly during the trading session on Friday to finally slice through the 1.30 level. This is an area that had been significant support multiple times and slicing through this area was always going to be a very negative turn of events. At this point, the market is likely to see an attempt to get down to the 1.26 level, which is an area that is the bottom of a huge consolidation area. By doing so, the market has suggested that we are ready to go lower. If we were to break down below the 1.26 level, then things could get ugly.
Interest rates in the United States continue to spike quite violently, and as long as that is going to be the case, this is a market that will favor the greenback. Even though the Bank of England is rather hawkish, the reality is there is a lot of fear out there as well, so that of course favors the greenback. Looking at this chart, the size of the candlestick also leaves no doubt that the sellers have taken over yet again. Rallies at this point will continue to offer shorting opportunities, as the trend is most certainly to the downside.
As far as buying is concerned, I would not be interested to do it until we break above the 50 Day EMA that I would consider doing that, and even then, I would need to see some type of fundamental shift coming out of the Federal Reserve. I do not see that happening anytime soon, so we should continue lower.
GBP/USD Price Forecast Video 25.04.22
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