Yahoo Finance GBP/USD Price Forecast – The British Pound Continues to Challenge a Major Resistance Barrier
British Pound vs US Dollar Technical Analysis
The British pound has rallied ever so slightly during the trading session on Friday to reach the 1.25 level. This is an area that of course is a large, round, psychologically significant figure, and an area where we had formed quite a bit of noise previously. In fact, that noise that I am referring to could be thought of as part of a bearish flag, and therefore we are simply retesting that area at this point.
It would not take a lot of imagination to see this market as potentially dropping to the 1.2350 level, as it is the bottom of the consolidation over the last couple of days. If that is going to be the case, then it still looks bearish, despite the fact that we are treading water at the moment. This is a situation where I think you will see plenty of noisy behavior, as has been the case for a while.
Keep in mind that the Federal Reserve continues to tighten monetary policy, and of course, is the most hawkish of major central banks. That should continue to cause the US dollar to rally, and it is worth noting that we have recently had a pullback in yields, but on Friday started to see them rise again. If that does in fact end up being the case, it is likely that this pair will fall over the longer term. In fact, it is very likely that we are going to see this market continue to be a “fade the rally” type of situation going forward. The market has a significant amount of resistance all the way to at least the 1.26 level above.
GBP/USD Price Forecast Video 23.05.22
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This article was originally posted on FX Empire
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