The British Pound Gives Up Early Gains

British Pound vs US Dollar Technical Analysis

The British pound initially tried to rally during the trading session on Thursday but has given back the early gains to show signs of exhaustion. Quite frankly, the market had overreacted during the trading session on Wednesday, so to give back a bit would not be a huge surprise, especially considering that we are in a major downtrend. The market falling to retest the 1.30 level would be the default assumption here. Keep in mind that the 1.30 level is an area that extends support down to the 1.28 handle.

The area between 1.30 and 1.28 is very thick in trading action, so it does suggest that it will be difficult to break through all of that. Because of this, I would anticipate a grind more than anything else. On the other hand, if the market were to turn around and break above the 50 Day EMA, I would then consider this market to possibly be turning around for a longer-term move, and it would suggest that the “W pattern” will be valid, and therefore I think it could be a major bottom in this market.

All of that being said, the US dollar will have a bigger part to play than anything else, and it is worth noting that the last couple of days have seen the 10-year note drop yields a bit, so that helps quite a bit. Ultimately, we are in an area that could be a major inflection point, so it is likely that we are about to get a rather big move. I have a couple of levels in mind, so now it simply a matter of letting the market tell me which way we go.

GBP/USD Price Forecast Video 15.04.22

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