The British pound had a volatile session during the day on Thursday, as we continue to go sideways, but then turned around near the 1.2980 level to test the 1.2930 level again. The market also has massive amounts of support below at the 1.29 level and I think that the market will probably try to reach towards the 1.30 level after that. That’s an area that I think will be massively resistive and extends to the 1.3050 level, but a break above that level census market much higher, and towards my longer-term target of 1.3450. Keep in mind that today is Nonfarm Payroll Friday, so we will have a lot of movement in the US dollar overall. If we were to break down from here, I would expect that the 1.28 level would be supportive as well. It’s below there that I would become concerned about the British pound. Until then, I believe that pullbacks are probably going to be looked at as potential value opportunities in what has been a very strong uptrend.
Until we can break down below the 1.28 level, I believe it’s time to start buying dips on the supportive looking candle’s, and I think it’s probably going to be very difficult to hang on to the trade for any real length of time until we break above the massive resistance at the 1.3050 level. Once that happens, then I think it’s time to start adding to your winning positions to the upside. Alternately, if we do breakdown below the 1.28 level, I think the market probably goes looking for the 1.26 level rather rapidly. That would show a massive surge in the value of the US dollar, meaning that it’s time to start reevaluating everything in the Forex markets.
Written by FX Empire