The British pound rose during the day on Wednesday, as we continue to press against the 1.3250 level. Currently, looks as if the market is in a somewhat consolidate of tone, but with a slight upward bias. I think the pullbacks continue to be buying opportunities, as the 1.32 level below is massively supportive. I think that a bounce is more than likely going to be a buying opportunity, and therefore I think that the market will offer value occasionally. Those opportunities should be taken advantage of, and I believe that the 1.32 level is an excellent area to look for it.
Breakout
Keep in mind that this market did break out recently, and I believe that the British pound will continue to see plenty of buying opportunities. Even below there, I think that the 1.3150 level will be supportive as well, based upon a potential uptrend line. Ultimately, markets are probably going to go looking towards the 1.3450 level above, which is the top of the consolidation area that the market has reentered recently. If we can break above there, we could go to the 1.35 handle, and perhaps even higher than that. The US dollar continues to suffer at the hands of the Federal Reserve, and it’s somewhat dovish outlook. Keep in mind that the Bank of England has an interest rate decision coming out today, so it’s likely that we will continue to see volatility going into the session, but any selloff of this point in time I think is going to be a nice opportunity to take advantage of. It’s not in last of the Bank of England specifically suggests that it is going to increase quantitative easing that I would remotely consider selling this pair as I think we continue to see buyers jumping in occasionally.
Written by FX Empire