The British pound pulled back a bit during the trading session on Thursday, showing signs of more exhaustion but ultimately this is a market that should continue to find buyers on dips, giving us an opportunity to pick up a little bit of value when it occurs. The 1.30 level underneath is massive support, and at this point it’s likely that we continue to see a lot of volatility, especially considering that the Brexit is still up in the air as far as how it’s going to work out.
GBP/USD Video 22.03.19
On the other side of the equation we have the Federal Reserve which is looking likely to remain on the side, and that could make the US dollar a bit soft in general. Ultimately, this is a market that I believe will go higher but it’s going to continue to be a major source of headaches if you put too much into it in one shot. Ultimately, the 1.35 level above is a major ceiling and as a result it’s a major target.
To the downside, I’ll be looking for short-term supportive candles to get involved. I think that the algorithms will continue to cause a major issue, but overall the market has started to reach to the upside, and we have broken through a major downtrend line. That is the beginning of an uptrend, and the market is very likely to be very noisy, but longer-term investors seem to be picking up Sterling based upon value.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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