British Pound vs US Dollar Technical Analysis
The British pound initially rallied during the trading session on Tuesday but then turned around to break down a bit. At this point, we are starting to slice through the short-term support, and it looks like the British pound could go looking to get back down to the 1.20 level. The 1.20 level underneath is a massive support level, and of course, has a lot of psychology attached to it. Because of this, I think it will attract a lot of attention if we get down there. If we can break it down below there, then it’s likely that the British pound will start to flush much lower.
Rallies at this point I think it sold into, all the way to at least the 1.2350 level. That is the top of the most recent consolidation area, so with that in mind it should offer a little bit of resistance. If we were to break above there, then it’s possible that we could look at the 50 Day EMA as an area that could cause a certain amount of resistance. It sits just below the 1.25 level, an area that is a large, round, psychologically significant figure, and a barrier that extends to the 1.26 level. If we were to break above there, then the next target could be the 1.30 level.
That being said, I think it’s more likely going to be a “fade the rally” type of situation, and we are most certainly in an ugly downtrend that I think has further to go. The Federal Reserve continues to tighten monetary policy, while the Bank of England is far behind the curve.
GBP/USD Price Forecast Video 30.06.22
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This article was originally posted on FX Empire