British Pound Looking for Support

British Pound vs US Dollar Technical Analysis

The British pound has fallen a bit during the trading session on Tuesday but found buyers near the 1.30 level to turn things around again. That being said, the market looks very likely to be trying to form some type of basing pattern. The market will continue to see plenty of volatility in this area, but quite frankly this is a market that has had plenty of things to think about over the last several weeks. At this point, we are trying to figure out whether or not we are going to break down through the massive support, or are we going to turn around finally?

Market participants are trying to figure out whether or not there is going to be a huge run towards the US dollar, or if risk appetite returns. If it does, that should help the British pound against the dollar, but on the other hand, if we do get another shock, is very likely that we will break below the 1.30 handle and grind our way down to the 1.28 level. That being said, it must be noted that we have been in a downtrend for a while, so we have a lot of work to do in order to turn things around.

The 50 Day EMA is currently at the 1.30 to 50 level, which is also an area of relative resistance. With that being the case, this is a market that is very much range-bound, and I think it will continue to be so in the short term. If you have a short-term range-bound trading system you like to use, this might be the market for you.

GBP/USD Price Forecast Video 07.04.22

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