British Pound vs US Dollar Technical Analysis
The British pound rallied ever so slightly during the trading session on Friday but has also given back some of the gains just above the 1.23 level. Ultimately, this is a pair that is trying to figure out what to do next, as we have been hanging around the same area all week. The pair is most certainly in a downtrend, so that’s something that you should keep in the back of your mind.
If we do rally from here, I think there is plenty of resistance to be found near the 1.25 level, and then perhaps even the 1.26 level. Beyond that, the 50 Day EMA sits just above the 1.25 level as well. The market has seen a lot of action in that area previously, so one would have to assume that the market will have a bit of “market memory” in that area. Because of this, I am more than willing to start shorting this market on signs of exhaustion and that general vicinity.
If we break down below the 1.22 handle, then it’s likely that the market goes down to the 1.20 handle. I say this because the market formed a couple of hammers for the Wednesday and Thursday candlesticks, so breaking down below those candles should open up the possibility of a move lower. The Federal Reserve continues to tighten monetary policy, so that has had quite a bit of upward pressure on the value of the US dollar, and then by extension, it will put downward pressure on the British pound, at least measured in US dollars. Fading rallies will be my favorite way to play this market.
GBP/USD Price Forecast Video 27.06.22
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This article was originally posted on FX Empire
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