British Pound Continues to Slump Against US Dollar
The British pound has pulled back a bit during the course of the trading session on Monday as we continue to see a lot of give back from the massive move that we had seen previously. With this being the case, the market looks as if the 1.37 level continues to be an area of concern. Nonetheless, I do not necessarily think that this is a situation that is something to be concerned about, due to the fact that the breakout was so strong that it is only a matter of time before the buyers will return.
GBP/USD Video 18.01.22
The 200 day EMA is sitting around the 1.36 level, and that could offer a bit of a area of support, and then again at the 1.35 level we should see a certain amount of support as well. If we were to break down below there, then it simply is going to be more or less a continuation. To the upside, if we can break above the top of the shooting star from the Thursday session, then the market could go much higher. All things being equal, this is a market that will be noisy, but the British pound is probably going to be a bit of an outlier against the greenback as we have seen lately. I do not think that changes anytime soon, due to the fact that the British economy is supposedly going to be one of the first once the exit the pandemic. That being said, it is a simple matter of momentum at this point in time, so I do believe we will find value hunters on this pullback.
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This article was originally posted on FX Empire
