British Pound Is Approaching Major Support

British Pound vs US Dollar Technical Analysis

The British pound has fallen during the trading session on Friday to reach the 1.30 area. This is an area that was massive support previously, but at this point in time, it looks as if we are going to threaten it yet again. The question now is whether or not we can break down below there, or if we can bounce as well. Ultimately, the market is trying to figure out whether or not the US dollar will overwhelm the Sterling, which at this point it looks like it very well could.

Keep in mind that if we do break down below the 1.30 handle, it could open up the possibility of a move down to the 1.28 handle, but there is a lot of noise between the two levels. Because of this, I would not anticipate that this would be an easy move, but it certainly is a possible one.

Alternately, if we turn around, I believe that the 50 Day EMA and the 1.30 to 50 level both could offer a relatively strong resistance barrier. In fact, it is not until we break above those areas that I would consider going long in this market. Obviously, the Federal Reserve is likely to be hawkish going forward, so that has been driving the US dollar higher in general. Ultimately, I think that this is a market that has a huge fight on its hands over the next couple of days, and it will more likely than not be a very interesting place to observe. The next couple of days will be crucial, so we will have to wait to see whether or not the 1.30 level can actually hold.

GBP/USD Price Forecast Video 11.04.22

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