The GBP / USD saw a rapid sell-off and the Forex pair is now crossing values ​​not seen since the second week of January 2021.

GBP / USD traders have been treated or traumatized by the Forex pair in the past day. Rapid trade forces set in and the GBP / USD fell from nearly 1.35550 to 1.35040 in the blink of an eye. This sudden drop was quickly followed by an upward reversal that reached a ratio of around 1.35,500 before the GBP / USD found headwinds again.

As of this writing, the GBP / USD is near 1.35200 and conditions remain fast and choppy. Traders who have the courage to take speculative positions need to practice their risk-taking skills to guard against a new influx of volatility. While the GBP / USD may look like it’s oversold, technically, if the 1.350000 market shows vulnerability, it could trigger a wave of targeted selling that targets the values ​​seen in December 2020. The des mark 1.34500 saw many trades within its ratio at the end of last year.

Global markets are disrupted as institutional investors adjust their outlook on central banks; the US Federal Reserve and the Bank of England have both made their views on pursuing higher interest rates. In the short term, it seems that sentiment generated by the US central bank and economic concerns about rising energy costs in the UK may have an effect.

The US bond market also plays a role in the Forex equation. While some sterling-loving traders may think the GBP / USD has been oversold, they may want to stay conservative and see prices consolidate before initiating short-term long positions.

Technically, it looks like the GBP / USD may be under further downward pressure. Traders taking a cautious approach may want to wait for slight upward reversals before continuing to sell short and looking for downside action. Aggressive traders may dare to enter short positions at current price levels close to 1.35200.

Support near the 1.35100 mark should be watched, if this level weakens and the 1.35050 and 1.35000 become clearer it could trigger another wave of rapid volatility. Traders need to make their take profit and stop loss orders work to guard against rapid conditions. Speculators who are aiming for lower stocks should not let greed get in their way and ensure that they are targeting legitimate ratios that do not extend their positions longer than they expected.

Short term outlook GBP / USD

Current resistance: 1.35350

Current support: 1.35040

High Target: 1.35620

Low target: 1.34855


Leave a Reply

Your email address will not be published.