British Pound Continues to Reach Towards Support

British Pound vs US Dollar Weekly Technical Analysis

The British pound has fallen rather significantly during the course of the trading week to reach towards the 1.30 level, an area that has been important more than once on longer-term charts. Because of this, it does appear that the market is ready to perhaps threaten a major breakdown, but we did bounce a bit. In the short term, it looks as if we are going to go sideways, but you can see on the longer-term charts that a breakdown from here would of course be rather important. In that scenario, I believe that we could drop all the way down to the 1.28 level.

On the upside, the 1.3350 level has been significant resistance based upon the shooting star from the previous week, so breaking above that would end up being a rather positive turn of events. In that scenario, I anticipate that the British pound could go looking toward the 1.35 handle above, an area that has been a bit of a ceiling for market participants.

While I do believe that the US dollar is strengthening due to a fear trade, the reality is that the British pound has fared much better against the US dollar than many of its contemporaries, perhaps due to the fact that the central bank in England is a bit more hawkish than many others. As long as that is the case, even if the British pound does fall from here, I think it will be “less bad” than many other currency pairs that we follow. Over the longer term, I believe that this is a market capable of a big move, but currently trying to figure out where the momentum is.

GBP/USD Weekly Price Forecast Video 04.04.22

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