The GBP/USD pair initially went sideways during the session on Wednesday, but found the 1.30 level to be supportive enough to continue to push this market to the upside. I think that the market will eventually try to break out, but with the FOMC announcement coming out later during the Wednesday session, the markets were relatively calm and awaiting some type of signal from the Federal Reserve. I believe that if we can stay above the 1.30 level, the GBP/USD pair should continue to go higher, probably aiming for the 1.3125 level, and then much higher than that. I believe that this market will continue to offer buying opportunities on dips, as it makes the British pound “cheap.”
I believe in buying dips in the market, and have no interest in selling into we can break down below the massive support that I see below. It’s not until we are below the 1.2950 level that I’m comfortable selling, but if we fall below that level, it’s likely that we will continue to go even lower and certainly things will have changed at that point. I believe that the buyers are tenacious, and it’s only a matter of time before the jump back into the market. If we do breakout to the upside, I believe that given enough time we will more than likely go looking for the resistance barrier at the 1.3450 level. There are going to be several headlines coming out from politicians that will have an influence on the British pound, but in the longer-term I think that we are going to continue the uptrend. Look at those pullbacks based upon errant comments as gifts, as they allow you to pick up the market at a cheaper level.
Written by FX Empire