British Pound vs US Dollar Technical Analysis
The British pound has fallen again during the day on Thursday as we continue to see the US dollar eviscerated everything in its path. Because of this, the British pound has sliced through the 1.25 level right away, and now it looks like we are in a bit of a freefall. If that is going to continue to be the case, the British pound has much further to go. The brutality of the selloff has been quite drastic, and now it looks as if we will continue to see a lot of negativity and risk destruction around the world, which almost always means that the US dollar goes higher.
On the upside, the 1.25 level should be resistance, but even if we break above there, I think we have much further to go before you could turn things around and suggest that we have further to go. Ultimately, this is a market that I think every time it rallies, you should be looking for an opportunity to start shorting again. Because of this, I think that the first signs of exhaustion will be jumped upon by the market, as the US dollar ripping higher seems to be the one thing that you can see in almost all markets.
At this point, the 50 Day EMA is racing to break down below the 1.30 handle, and therefore should continue to attract resistance if we get anywhere near it. At this point, we are 600 points below that level, and what I would consider to be oversold by just about any definition. Nonetheless, you have to be completely reckless to start buying at this point.
GBP/USD Price Forecast Video 29.04.22
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This article was originally posted on FX Empire
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