British Pound vs US Dollar Technical Analysis
The British pound has fallen a bit during the trading session on Wednesday as we are hanging about the 1.25 level, looking for some type of direction. If we break down below the 1.2450 level, then it’s possible that the market could continue the overall downtrend. This is my base-case scenario, but obviously, I would need to see that signal kickoff in order to put money to work.
On the upside, the 1.26 level should be significant resistance, and I do think that it is probably only a matter of time before sellers would jump into the market if we try to get there. Even if we break above that, we are still very much in a downtrend, so you need to look for signs of exhaustion to start selling. The last three candlesticks make up a somewhat bearish pattern, but it’s not enough to get overly excited.
This is going to be about the US dollar more than anything else, but rates are starting to drop a bid so it’ll be interesting to see whether or not the US dollar strength can continue. There’s also the possibility that we see money running towards the United States for safety, despite the fact that yields may fall. At this point, there’s no reason to think that the overall trend in this market is going to change anytime soon, so you should keep in mind that market participants would need to change their entire outlook to make this thing change. Furthermore, you would also need to see the attitude coming out of the Federal Reserve change drastically, which we are nowhere near having happen at this point.
GBP/USD Price Forecast Video 26.05.22
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This article was originally posted on FX Empire