British Pound Recovers After Fall

The British pound has fallen a bit during the trading session on Thursday to kick the session off but then turned around to show signs of life again. By doing so, the market looks as if it is ready to continue its drive higher. With that, the market then will go looking towards the 1.33 handle, then possibly the 1.34 handle where we would see even more resistance. Ultimately, this is a market that will be very noisy, but it is in a downtrend overall. At this point, the 1.34 handle is an area that could be a gateway to higher pricing, but if we cannot overcome it, then the market will sell off on signs of exhaustion. In the short term, it looks as if the market is ready to go a bit higher.

GBP/USD Video 25.03.22

Either way, you need to be cautious with the risk appetite being all over the place as of late, as it will almost certainly have an effect on what happens with the US dollar, and by extension what happens with this currency pair. The 50 Day EMA above is dynamic resistance, so that could come into play as well. I think what we have here is a market that is trying to figure out whether or not it the 1.30 level is the absolute bottom, which of course is a major figure and a longer-term support level. If that does end up being the case, then we are in the process of a complex pattern.

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