The British Pound Continues to Threaten a Breakdown

British Pound vs US Dollar Technical Analysis

The British pound initially tried to rally on Thursday but gave back gains yet again to show signs of exhaustion. The 1.30 level underneath is a significant support level, which I believe extends down to the 1.28 handle. Looking at this chart, it is obvious that we have seen a significant amount of downward pressure, and I just do not see that changing anytime soon. Because of this, I continue to look for short-term opportunities to sell this market, as we continue to see so much downward pressure.

On the upside, as far as buying is concerned it is difficult to do so at the moment, especially as we are forming a massive descending triangle. However, if the market were to break above the 1.32 handle, it would not only clear a lot of short-term resistance but would also break above the 50 Day EMA. That is huge technical resistance, so breaking above all of that could have people excited. At that point, we would likely see more money flooding into the market, and potentially set up a massive “W pattern” based upon the double bottom that is trying to form the 1.30 handle.

The market has been grinding around quite a bit over the last couple of weeks, so it certainly makes a lot of sense that we simply grind around in this area going forward, perhaps trying to chip away at the major support level, and then perhaps go down to that 1.28 handle. That is going to be a slow-motion though unless of course something fundamentally changes the outlook. Because of this, a lot of patience will probably be needed.

GBP/USD Price Forecast Video 22.04.22

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