Yahoo Finance British pound drift lower on Tuesday towards vital support
The British pound has initially tried to rally during the session on Tuesday but rolled over and reached towards the 1.43 handle. That’s an area that previously has been resistive, so I think that this is an area that could be supportive, as it would be a sign that we are continuing the uptrend in general. I recognize that there is a lot of noise between there and the 1.45 handle, so it’s likely that the market will find some type of action in this area. I believe that the volatility will continue to be a major issue, but it looks likely to find an overall upward bias. I believe that the market breaking above the 1.45 level should send this market much higher, but I believe that move will take several attempts to finally get above the resistance.
If we were to turn around and break down below the 1.4250 level, then I would have to rethink the situation, but I would still think that eventually the buyers would take over. The 1.40 level should be the “bottom” of the uptrend in general, so it’s not until we break down below there that I would be concerned with the market. If we break down below the 1.40 level, then I believe that the sellers would come in and start pressing this market rather drastically. Look for volatility, but in general I think you should be looking for a buying opportunity.
GBP/USD Video 18.04.18
This article was originally posted on FX Empire
