British Pound vs US Dollar Technical Analysis
The British pound has fallen rather hard during the trading session on Monday as we continue to see a lot of negativity when looking at the GBP/USD pair. At this point, the US dollar is the strongest currency out there of the major markets, and therefore it makes quite a bit of sense that we would see this pair continue to go lower now that we have ripped through such important support. That being said, the market bouncing at this point in time should continue to offer a nice selling opportunity at the first signs of exhaustion.
Looking at this chart, it now seems that we could go looking to reach the 1.25 level given enough time, so I do think that we have further to go over the longer term. That does not necessarily mean that we are going to meltdown from here, just that I am very suspicious of this market until we break above the 1.31 handle. Until then, I am looking to pick up the US dollar as economic conditions are starting to deteriorate worldwide. As long as that is going to be the case, I am very hesitant to that against the greenback. As money starts to look for places to hide, the United States is almost always the first place it runs toward.
If we were to break down below the 1.25 level, the market is likely to see an accelerated sell-off, and this would almost certainly be in reaction to some type of panic in the markets. Ultimately, I think it is going to be quite some time before I turn around and start buying this pair, unless of course the Federal Reserve suddenly backs out of its plans.
GBP/USD Price Forecast Video 25.04.22
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This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/british-pound-continues-fall-140321658.html