New Zealand markets open in 1 hour 16 minutes
  • NZX 50

    11,752.09
    -1.39 (-0.01%)
     
  • NZD/USD

    0.6404
    +0.0114 (+1.81%)
     
  • ALL ORDS

    7,238.70
    -39.90 (-0.55%)
     
  • OIL

    91.56
    +1.06 (+1.17%)
     
  • GOLD

    1,807.50
    -4.80 (-0.26%)
     

GBP/USD Price Forecast – British Pound Breaks Through a Support Level

·2-min read

British Pound vs US Dollar Technical Analysis

The British pound has broken down significantly during the trading session on Tuesday to slice through the 1.20 level. It appears that the market is in serious trouble, and it’s likely that we are going to continue to see US dollar strength. The US dollar is like a wrecking ball against almost everyone, and everything. Ultimately, the market looks as if it’s ready to go much lower, perhaps down to the 1.18 level.

The market will eventually break down below that and go looking to the 1.16 level. Ultimately, I think that the market is more likely than not going to find sellers on short-term rallies. The 1.20 level could end up being a bit of a resistant barrier, perhaps offering selling pressure. That being said, the market were to break above the 1.22 level, it would be a very bullish sign, but there are still areas above that could cause major problems. Because of this, I think this continues to be a “fade the rallies” type of situation, as the market will continue to see quite a bit of downward pressure.

Ultimately, I think the US dollar will continue to strengthen into the summer, as the markets continue to price and the idea of a recession and of course a strengthening Federal Reserve when it comes to tightening. Ultimately, this is a market that I think goes much lower, so when you see rallies, it should be an idea that you can pick up “US dollars on the cheap.” I do believe that the US dollar continues to be a massively strong currency, against almost everything, especially anything close to the European continent.

GBP/USD Price Forecast Video 06.07.22

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE:

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting