The British Pound Continues to Test Major Support

British Pound vs US Dollar Technical Analysis

The British pound has gone back and forth during the trading session on Wednesday as we continue to hang about the 1.30 handle. This is an area that will be important, as it is a large, round, psychologically significant figure, and of course an area where the market had recently bounced from. The market has been very negative for quite some time, so it will be interesting to see if this support can hold. If it does not, then the British pound is very likely to attempt a move down to the 1.28 handle.

The area between 1.30 and 1.28 is very noisy, so I would anticipate that it will be difficult, to say the least, and therefore I think it is probably worth noting that you will have to be very patient if you are looking to short this market. More likely than not, we will probably get another attempt at a bounce, but whether or not the British pound can stabilize enough to rally for any significant amount of time is a completely different question.

The 50 Day EMA is currently near 1.3225 and sloping lower. I think that any rally will probably struggle in that general vicinity, so therefore I would look at a bounce as an opportunity to short this market again if we get some type of exhaustion candle. The market will more likely than not be very noisy, but that is going to be par for the course, as the financial world is all over the place right now.

GBP/USD Price Forecast Video 14.04.22

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