British Pound Trying to Determine the Direction

British Pound vs US Dollar Technical Analysis

The British pound has gone back and forth during the course of the trading session on Friday as it looks like the 1.32 level is going to continue to cause a significant amount of interest in the market, as it was previous resistance, and now it is trying to offer support. Whether or not that is actually going to be the case remains to be seen, but there does seem to be a lot of fighting in this general vicinity.

When you look at the longer-term chart, it is worth noting that the 1.30 level is a major support level that big money traders are probably paying attention to. You can see this even on the monthly chart, so I think you have a real possibility of the British pound turning around again. That does not mean that is going to be easy, and it should be noted that the US dollar has had a lot of help from higher interest rates, so that might be something worth watching as well.

Both of these central banks are considered to be hawkish at the moment, so that might be part of the choppy behavior that we are seeing. Nonetheless, the 50 Day EMA above should be paid close attention to if we do break out to the upside because it could offer a little bit of resistance.

If we were to break down below the 1.30 handle, that would be an extraordinarily negative sign, perhaps opening up an even bigger selloff, with perhaps an eye on the 1.28 handle which is an area that has been important more than once in the past.

GBP/USD Technical Analysis Video 28.03.22

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