British Pound Continues to Slump

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit during the trading session on Monday but gave back a bit of the gain as we cannot hang on to the bullish attitude. The market is in the midst of consolidation right now, as we are grinding around above the 1.30 handle, an area that will attract a lot of attention overall, as the market has a major support region in that area going back multiple years. Furthermore, it is also a psychologically important round figure.

If we do break down below the 1.30 handle, the market could start falling to the 1.28 handle. The 1.28 handle is at the bottom of the overall support zone, so obviously, the market would see a lot of noise between here and there. If we were to break down below the 1.28 handle, then the market will break rather significantly. The most likely outcome at this point is going to be that we grind away in this general vicinity until we figure out where to go next.

On the upside, the market has plenty of resistance above the 1.32 area, especially as the 50 Day EMA is racing towards that region. It is not until we break above there that I would be convinced that we could go higher, which could open up the possibility of a move to the 1.34 handle above, possibly even the 1.35 level. The US dollar continues to strengthen around the world, so it will be interesting to see whether or not we can break below this crucial 1.30 handle.

GBP/USD Technical Analysis Video 05.04.22

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