The British pound went back and forth during the day on Friday, initially trying to break above the 1.30 level, but then found enough resistance to turn around yet again. Ultimately, I think that the market should continue to be at the whim of risk appetite as the United States and North Korea continue to argue. Because of this, I believe that the market will continue to stay in the overall consolidation. However, if we break down below the lows of the day, we could see the British pound rollover rather significantly and reach down to the 1.2850 level. Alternately, if we break above the 1.3050 level, the market should continue to go much higher, probably reaching towards the 1.32 handle. This is a market that should continue to be very volatile as we are trying to figure out which direction we are heading ask. Right now, it’s difficult to see any type of clarity in this market, and with this being the case I think that short-term back and forth trading with small positions is probably the best way to approach this market.
Written by FX Empire