The British pound gap lower at the open on Monday, testing the 1.20 level underneath. This is an area that should be massively supportive, but I believe we are trying to get down below there, perhaps reaching towards the 1.15 level over the longer term. Any rally now will more than likely offer and exhaustive candle that we can start shorting, as the British pound continues to be pummeled. The monthly charts have massive support at the 1.15 level, so longer-term that will be my target. Any massive rally from there could be the end of the downtrend.
Written by FX Empire