The British Pound Looks Vulnerable

British Pound vs US Dollar Weekly Technical Analysis

The British pound has initially rallied during the week but gave back quite a bit of the gain to show hesitation. While we have a major support level underneath, it looks as if the market is going to threaten that area yet again. This of course is the 1.30 level, an area that not only is psychologically important, but it is an area that has a history of being structurally important. Because of this, I am very hesitant to buy this market from a longer-term standpoint at the moment.

However, if the 1.30 level ends up offering a significant amount of support or if we bounce from there on a lower timeframe, it might be worth a long position. Ultimately, I would feel the same way if we broke above the top of the shooting star candlestick for this week. That would show strength. In that scenario, I believe that the market would go looking towards the 1.3350 region.

A lot of this will come down to US dollar strength or weakness, as is normally the case with these major pairs. I think given enough time, is very likely that we see this market move directly correlated to the US Dollar Index as one would anticipate. If we break down below the 1.30 handle, that could kick off quite a bit of selling pressure. On the upside, I see multiple areas of trouble, so this is going to be a significant fight ahead for those who are bullish of GBP.

GBP/USD Technical Analysis Video 28.03.22

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