The British pound has fallen a bit during the trading session on Friday, as we continue to see significant amounts of bearish pressure for anything trying to trade against the US dollar. Interest rates rising in America will continue to put upward pressure on the greenback, which by extension will break this market down. I think rallies are to be sold at this point, and I don’t hesitate to get short of this market. I believe that the 1.34 level is now going to offer a bit of a ceiling, not to mention the previous uptrend line that has been broken. This is a nice downtrend that we can continue to take advantage of, and I think that once we break down below the 1.33 handle, the market could very well go looking towards 1.30 level underneath. Ultimately, this is a market that I think will continue to show signs of bearish pressure every time he gets ahead of itself to the upside, and I think that the 1.30 level makes a lot of sense as it is a psychologically important level. I believe that the market will continue to see plenty of reasons to go lower, not the least of which is uncertainty when it comes to Great Britain.
I think that the summer in general is going to be good for the greenback, and this pair will be any different. Having said that, there is an interest rate hike coming for the British, so that of course helps the British pound in relation to other currencies, but the US dollar can expect at least three interest rate hikes.
GBP/USD Video 28.05.18
This article was originally posted on FX Empire
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