Sterling Continues to Go Sideways

British Pound vs US Dollar Technical Analysis

The British pound has gone back and forth during the trading session on Thursday again, in almost a complete mirror image of the Wednesday session. This suggests that we are trying to build up enough momentum to make a bigger move, and it also suggests that we are trying to figure out whether or not the 1.30 level underneath continues to offer massive support or not. From a longer-term perspective, the area below 1.30 should, at least in theory, offer support down to the 1.28 handle. It is because of this that I believe it is going to be difficult to break down from here.

However, it should also be noted that the US dollar is one of the strongest currencies at the moment, and that is something that cannot be forgotten. After all, there are a lot of things out there to be concerned about, and the US dollar is one of the first places that people will run to in times of trouble. Furthermore, we have a very hawkish Federal Reserve, and that could continue to help the US dollar over the longer run.

On the upside, the 1.3250 level is a significant amount of resistance, especially as the 50 Day EMA is grinding through it. At this point, I think it offers a bit of a ceiling for the market, and it is likely that we would see that area offer quite a bit of selling pressure. If we were to break above there, things could change, but right now it looks as if we are simply trying to test the waters underneath.

GBP/USD Price Forecast Video 08.04.22

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