The GBP/USD pair rose significantly on Friday as the 1.62 handle has been broken. The market looks very supportive of the British pound in general, and as such we think this trend should continue. The floor in the market in our opinion right now is at the 1.60 handle, and as such we are buying dips as long as we can stay above that level. Remember, we had been calling for target 1.63 based upon an ascending triangle formed over the summer. It now looks like that is almost a given.
As far as selling is concerned, we won’t do it until we get below the 1.57 handle which of course would show a serious change of momentum. This would show several support levels had been broken, and at that point in time certainly the confidence of British pound bulls would be shaken.
Written by FX Empire