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British Pound vs US Dollar Technical Analysis
The British pound has bounced a bit during the trading session on Monday, using the 1.20 level Alice a major support level. The large, round, psychologically important figure will obviously attract a lot of attention, and therefore it should not be a huge surprise that we have bounced the way we have. If we were to break down below the 1.20 level, that would obviously be a very negative turn of events for the British pound, perhaps opening up the door for a move down to the 1.18 level, followed by the 1.16 level.
I do think this could very well happen relatively soon, but it looks as if we got a bit of a bounce on our hands in the short term. The 1.230 level should be rather resistive, and therefore I think it is probably an area where the market fails to break above very easily. If we did, that could be something worth paying attention to, but I think there’s probably even more resistance near the 1.250 level, extending to the 1.260 level which I believe is the top of a “wall of selling.”
If we were to somehow break above all of that, then we can start to talk about a trend change. That being said, it’s probably going to take the Federal Reserve suggesting some type of reversal of course, as they are hell-bent on tightening monetary policy, and have promised to do as such over the next couple of meetings. The question now will come down to what the Federal Reserve does late this year.
GBP/USD Price Forecast Video 05.07.22
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This article was originally posted on FX Empire