British Pound vs US Dollar Technical Analysis
The British pound has rallied a bit to kick off the Tuesday session, but it does seem as if we are struggling just a bit to continue to the upside. I think given enough time, we will more likely than not see selling pressure come in and overwhelm the British pound as the US dollar is by far the favored currency. At this point in time, the market is likely to see a lot of noisy behavior, but I also look at the 1.25 level above as a major resistance barrier that we will have to overcome. Eventually, we are more likely than not will see a huge fight in that general vicinity, if we can even get there.
On the downside, the 1.20 level could be an area of interest, as it was the recent low. I do think eventually the sellers come back into this market, but it looks like we are seeing a little bit of a recovery rally in the short term. The Bank of England is far behind the Federal Reserve, so it’s likely that we will continue to see a lot of negativity for the British pound, at least against the US dollar. The US dollar is by far the favored currency out of all of the majors, and that’s not going to change anytime soon.
In fact, it’s not until we break above the 1.2650 level that I would consider going long, and even then, I think it would be something that would be temporary at best, with the 1.30 level determining the overall trend for me. If we break down below the 1.20 level, it’s likely that we go much lower.
GBP/USD Price Forecast Video for 22.06.22
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
Source: https://finance.yahoo.com/news/gbp-usd-price-forecast-british-141355576.html