British Pound vs US Dollar Weekly Technical Analysis
The British pound has broken significantly lower during the trading week to slice through the 1.30 level. This is an area that should have been important more than once, so the fact that we finally broke through it suggests that we have further to go to the downside. Because of this, the market is going to threaten the 1.28 level, an area that has been supported in the past. In fact, we are in the midst of a 200 point area of thick support. Breaking down below the 1.26 level could kick-off an even more ferocious selloff.
On the upside, if we break above the 1.30 level, that is the bare minimum to suggest that the British pound is going to attempt a recovery. At this point, I do not expect to see thin, because quite frankly the market continues to see so much in the way of negativity out there that it makes a certain amount of sense that the US dollar continues to be a favorite.
The fact that we are closing towards the bottom of the candlestick also suggests further negativity, so I believe that we will more likely than not continue to fall at this point, and therefore I would be cautious about any type of bounce as far as trying to take advantage of it going to the upside. I think signs of exhaustion on short-term charts will continue to lead the way, unless of course we simply break through the 1.28 handle, which is a green light to start shorting as well. The British pound looks very anemic, and I think will continue to be punished over the next several weeks.
GBP/USD Price Forecast Video 25.04.22
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This article was originally posted on FX Empire
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