British Pound vs US Dollar Technical Analysis
The British pound has dropped dramatically during Friday's trading session, ultimately breaking through the 1.30 barrier. Slicing through this area, which had previously received tremendous support, was always going to be a very unpleasant turn of events. At this point, the market is expected to witness an effort to break through the 1.26 level, which is the bottom of a massive consolidation region. The market has implied that we are ready to go lower by doing so. Things could get ugly if we break below the 1.26 support level.
Interest rates in the United States continue to rise rapidly, and this is a market that will continue to favor the greenback as long as that is the case. Despite the fact that the Bank of England is hawkish, the reality is that there is a lot of fear out there, which favors the greenback. The size of the candlestick on this chart also indicates that the sellers have taken control once more. Rallies will continue to give shorting chances at this point, as the trend is clearly to the downside.
In terms of buying, I wouldn't contemplate doing so until we break over the 50-day EMA, and even then, I'd need to see some form of fundamental shift from the Federal Reserve. I don't think it will happen anytime soon, so we should keep heading lower.
GBP/USD Price Forecast Video 25.04.22
Check out our economic calendar for a complete list of today's economic happenings.
