The GBP/USD pair has been all over the place during the session on Tuesday, with the 1.29 level offering a bit of a fulcrum for price action. I believe that this market will continue to be a bit sideways, but I have a longer-term upward bias. Currently, it’s probably better to leave this pair alone, but if you are a longer-term trader, this may end up being a nice opportunity to take advantage of value in the market’s going forward. We reached as high as 1.2960, and as low as 1.2860 during the session, so that of course shows just how much volatility we had during the day. I think that once we reach extreme lows, it might be a nice buying opportunity, and the way that this pair seems to be slamming around during the day, we may have several opportunities to build a position.
Building a longer-term position
I believe that building a longer-term position is probably about as good as it gets here. Small incremental trades eventually making up a nice moved to the upside. Once we get that, the market should then go to the 1.30 level above, which has a certain amount of psychological importance. A break above there should send this market to the 1.3450 level. That is the top of a massive consolidation area that the market had paid a lot of attention to in the past, so it makes sense that we would revisit that level. As far as selling is concerned, I don’t have any interest in doing so, because quite frankly I still believe that as long as we stay above the 1.2750 level, this market retains the bullish attitude that it had once we broke above that level several sessions back.
Written by FX Empire