British Pound Has a Quiet Thursday

British Pound vs US Dollar Technical Analysis

The British pound has gone back and forth during the trading session on Thursday, seemingly with nowhere to be anytime soon. Because of this, the market looks as if it is simply trying to digest the latest move and look for clues as to which way risk appetite might lean. That being the case, the market is one that is more likely than not compressing, and therefore could see an explosive move rather soon.

The 1.30 level underneath is a massive support level and an area that you need to pay close attention to. If we were to break it down below the 1.30 handle, there is a huge region of support that extends down to the 1.28 handle. That entire area will be very difficult to breakthrough, but if we did, that could open up a massive amount of selling as it would possibly open up a move down to the 1.25 handle.

On the other hand, if we were to break above the 50 Day EMA, that could open up a move towards the 1.33 handle, maybe even the 1.35 handle. That would take a certain amount of strength to come back into the marketplace, and we would probably see the US dollar selling off against most currencies. In that scenario, the market will more likely than not go much higher.

It is worth noting that the market is waiting for the jobs number, which comes out Friday morning. That will have a major influence on the US dollar and risk appetite in general, so keep that in mind. The markets will more likely than not do nothing of note until after that announcement.

GBP/USD Price Forecast Video 01.04.22

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