The British Pound Recovers

British Pound vs US Dollar Technical Analysis

The British pound has rallied a bit during the trading session on Wednesday to reach the 1.3150 level. By doing so, the market looks as if it is trying to at least stabilize in this general vicinity, if not bounce. However, there are plenty of reasons to think that this market may struggle, not the least of which will be the fact that the world is essentially on fire if you read the headlines, and with that being the case it does favor the US dollar on the whole.

We are in a downtrend and have been for a while, but it is worth noting that the 130 level is a major round figure that has offered support more than once. Because of this, it is going to be difficult to break down below that level. A little bit of consolidation in this region would make a certain amount of sense, as we had fallen so far to get here. Momentum runs out, the markets consolidate, and then they decide whether or not they are comfortable in that area.

The market also has the 50 Day EMA above is sloping towards it, and eventually, we will have to reconcile whether or not that is going to be dynamic resistance. The market will have a fight on its hands if we do get to that region, but right now I think we probably have more choppiness ahead than anything else. A lot of this will move on risk appetite, as the US dollar is a place where people run towards it in times of concern. While the British pound is not necessarily a huge risk asset, it most certainly is not the dollar.

GBP/USD Price Forecast Video 31.03.22

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