British Pound vs US Dollar Technical Analysis
The British pound tried to rally at the beginning of the Monday session but came under pressure as soon as the Europeans stepped on board. The 1.20 level is a psychological area that attracts a lot of attention, but quite frankly that’s about all it’s been. It now looks as if we are going to threaten a fresh new low, but ultimately, I think that rallies are going to continue to be sold into at the first signs of exhaustion, as this trend has been so vicious.
The 50 Day EMA is currently near the 1.2350 level and dropping quite significantly. Any bounce at this point in time will more likely than not give us an opportunity to pick up “cheap US dollars.” In fact, I do not have a scenario in which I’m willing to sell US dollars against any of the major currencies anytime soon, although there will be times when you need to step back and let the market do its thing.
I suppose I should retract the statement that there’s no scenario where I would be willing to go against the US dollar, but in this particular case, it would take a move above the 1.26 level to make that happen. The size of the candlestick for Monday does suggest that there are plenty of people out there willing to get short of this market, so I just don’t see that happening anytime soon. Eventually, the market is likely to go down to the 1.18 level, perhaps even the 1.15 level. The US dollar is like a wrecking ball for all things finance, and that’s going to be true for the British pound as well.
GBP/USD Price Forecast Video for 12.07.22
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This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/gbp-usd-price-forecast-british-131057590.html