GBP/USD Forecast Today 28/01: Struggles At Resistance -Chart
Date
1/28/2025 4:18:42 AM
(MENAFN- Daily Forex)
The British pound has been all over the place during the trading session on Monday, as the markets have been jolted by the idea that DeepSeek would wreck a lot of technology stocks. While this doesn't directly suggest that the British pound itself should be moving, I think a lot of this just comes down to the lowest coming in and out of the United States via the stock market. That being said, the market has been fairly strong over the last couple of days, but I think at this point it makes a lot of sense that we run into a bit of a barrier.
Technical Analysis
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The technical analysis for this GBP/USD pair is obviously very negative over the longer term, and it's worth noting that we struggled with the 50 Day EMA during the trading session on Monday. It's also worth noting that the 1.25 level is sat right there as well, so I think it all comes together for some type of negativity that we need to be cognizant of. With that being the case, I like the idea of shorting this market if we were to break down below the lows of the day, perhaps sending the British pound down to the 1.2350 level. Furthermore, you also have to keep in mind that Wednesday features the Federal Reserve and its interest rates decision, so that could cause a lot of volatility in the US dollar.
EURUSD Chart by TradingView
The Federal Reserve sounds extraordinarily tight and hawkish, which they very well could, that could accelerate this market to the downside. Ultimately, this is a market that given enough time will probably pay close attention to the next couple of days, but it's also worth noting that recently we have seen a nice bounce that is probably just about overbought at this point in time, and I do think that it's probably only a matter of time before we continue to the downside. However, if we were to break above the 1.2650 level, then I might start looking in the other direction.
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