The British pound fell a bit during the trading session on Tuesday, reaching towards the 1.3050 level, an area that of course has attracted a little bit of attention as of late. Overall, this is a market that continues to grind in a larger consolidation area, but the volatility has all but fallen off of a cliff in the last couple of days as we have seen an extension of the Brexit, and now there’s a lot of indecision.
GBP/USD Video 17.04.19
The 1.30 level underneath is significant support, and if we were to break down below there, the market will probably go down to the 1.28 handle. That’s an area where I would expect the market to “reset”, giving us an opportunity to perhaps find even more buyers in what has been a very bullish move. After all, we broke through a major downtrend line, and then have been consolidating, all the while we have been getting horrific headlines when it comes to the Brexit in general. That is actually relatively impressive if you think about it.
To the upside I see the 1.3350 level above is massive resistance and breaking above there would open the door to larger moves, perhaps to the 1.35 handle. That’s an area where I would anticipate a lot of selling pressure as well, but ultimately I think the market breaking above there would probably be the beginning of a longer-term overall trend change. I anticipate that we are in the middle of trying to do so anyway, so the reality is that I am still a buyer but looking for value.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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