The British Pound Continues to Find Support

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit during the trading session on Wednesday as the 1.30 level continues to offer plenty of support. This is an area that extends all the way down to the 1.28 level, so if we break it down through the 1.30 handle, then there is a lot of work to do to get down to the 1.28 handle. There is more of a grind waiting for the market if it breaks down there and some type of big move. This of course is assuming that there is not some type of massive headline that shocks the market into running toward the US dollar.

Looking at this chart, rallies that show signs of exhaustion will be jumped upon, unless of course, we can finally break above the 1.32 level, and perhaps even the 50 Day EMA. If we can break through all of that, it is likely that the market could go much higher, due to the fact that we have just formed a “double bottom” in that scenario.

The British pound has been in a downtrend for quite some time, so it will be interesting to see whether or not we can turn right back around and change everything. If we do, it is probably going to be a huge move against the US dollar in general. If that is going to be the case, then the British pound could be one of the bigger movers, simply due to the fact that the Bank of England remains rather hawkish. If the Federal Reserve changes its tune anytime soon, that could send this market screaming higher.

GBP/USD Price Forecast Video 21.04.22

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