(
MENAFN- Daily Forex)
- The British pound has fallen pretty significantly against the US dollar on Friday, as we are now testing the 1.29 level.
- I think at this point in time, if we break down below 1.2850, then we could see a little bit deeper correction.
- This does make a certain amount of sense because the dollar had been sold off so viciously that it was either going to zero or we were going to see a little bit of stability reenter the market.
The size of that candlestick is ugly, but it is worth noting that the euro has had three negative days in a row, whereas the British pound has only had two. It's worth noting that the 50-day EMA is turning around to break above the 200-day EMA, kicking off the so-called Golden Cross . So longer term, people will be looking at this through the prism of perhaps buying and holding. But I think this is a scenario that you need to watch a little closer, because quite frankly, we just had the Monetary Policy Committee release its voting record, and there was only one of them calling for a rate cut instead of the expected two.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money MPC Slightly More Hawkish
That was a little bit more hawkish than anticipated, and we have fallen since then. Whether or not we actually truly break down below the support at 1.2850 remains to be seen. But as goes the euro, will this pair go as well? From what I see, this is a dollar-wide move across the forex markets. There's also the possibility that we turn around and bounce.
And if we do, then we're in a situation where I think we're just working off some of this froth. It's clear to me that the 1.30 level is an area that is going to continue to be difficult to break above, but if and when we do, that would be a very positive sign. It would probably mean that the British pound goes looking to the 1.35 level. Regardless, a breakdown from here probably would challenge the 1.2750 level, which at that point in time would probably be right around the same place the moving averages are.
EURUSD Chart by TradingView
Ready to trade our GBP/USD Forex analysis? Here are the best regulated trading platforms UK to choose from
MENAFN24032025000131011023ID1109350991
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Comments
No comment