The British pound fell significantly during the day on Tuesday, as we wiped out all the gains from Monday. It looks as if we are going to continue to try to go lower from here, and I believe that the British pound will reach towards the 1.2050 level below. The 1.20 level underneath there is even more supportive, and if we can break down below there, then we can really pick up the momentum to the downside. I believe this is in reaction to the Article 50 being triggered soon, but that should be the absolute end of the downward pressure. There will be a bit of a blowout, and then longer-term “buy-and-hold” type of investors very well could find themselves getting involved in this market.
Written by FX Empire