British Pound Continues to Move Towards Major Support

British Pound vs US Dollar Technical Analysis

The British pound has fallen hard during the trading session on Monday to kick off the trading week, as we have hit the 1.31 handle rather quickly. After that, then the market goes down to the 1.30 level, an area that has been massive support previously. Because of this, I think it is probably only a matter of time before we retest that area, so therefore I think it will be interesting to see whether or not it holds. If it does not, it is possible that the British pound could go looking towards the 1.25 handle. With that being the case, the market is likely going to continue to see a lot of choppy behavior just underneath.

On the other hand, if we turn around and break above the 1.32 handle, then the market could go looking towards the 50 Day EMA. Once we break above there, the market is likely to go looking towards the 1.34 handle. At that point, you would see more sellers come back into the marketplace. While I do not necessarily believe that the British pound is going to break down, it certainly looks as if the market is going to continue to favor the downtrend overall, but that does not necessarily mean that it has to be drastic. I think we continue to just grind lower and try to pick away at the 1.30 handle underneath, which is a large, round, psychologically significant figure. Because of this, it is very likely that we will continue to see overall pressure on Sterling.

GBP/USD Technical Analysis Video 29.03.22

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