The GBP/USD pair initially fell on Thursday but found enough support near the 1.2950 level to bounce back towards the 1.30 handle. I think at this point in time, you’re probably best off sitting on the sidelines and waiting for the market to make up its mind before putting any money to work. Because of this, it’s likely that the market will need to make an impulsive candle before we get the “all clear”, which would be a move above the 1.3050 level above, or the 1.2950 level below. Until we get that moved, I think we will get a lot of short-term back and forth type of trading.
I believe the small positions are probably the best way to play this market, because of the volatility of the potential massive swings in profit and loss. However, I would say that it looks likely that the buyers are probably a bit more stringent than the sellers, but obviously a bit of confirmation would be necessary to put money to work.
Written by FX Empire