The British Pound Continues to See Support at the Same Level

British Pound vs US Dollar Technical Analysis

The British pound has bounced from the 1.30 level during trading on Monday, as the area has offered significant support, they are more than once, so it does make a certain amount of sense that we have bounced from there yet again. Furthermore, the market is paying close attention to this level more than once, as we have seen in both offer support and offer resistance multiple times. Looking at this chart, as long as we can stay above the 1.30 level, then it is possible that we could turn things around and perhaps eventually bounce even further.

However, you can see that every time we bounce it does end up showing signs of exhaustion, and therefore I think it is going to continue to find a lot of downward pressure on a move higher. The 50 Day EMA sits below the 1.32 level, and therefore it is likely that the downtrend should continue. The 1.30 level underneath is not only supported, but it is also a “support zone.”

This zone of support could extend down to the 1.28 level, so even if we do break down, I think it is more or less going to be a very choppy situation. The market is not one I have any interest in buying, at least not until we break above the 1.3250 level. At that point, then you could start to make an argument that we are turning around as it would have printed a massive “W pattern.” It is hard to tell whether or not that can happen right now, but it is something to keep your eye on going forward.

GBP/USD Price Forecast Video 19.04.22

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