Yahoo Finance The British pound initially tries to rally during the week, yet fails
The British pound initially tried to rally during the week but failed above the 1.43 level to continue going higher. We have rolled over during the week to fall towards the 1.40 level. That’s an area that of course is supportive, but we are closing towards the bottom of the weekly candle, so I think that we will probably go looking towards the uptrend line on the weekly chart for support again. That would make a nice continuation of the of trending channel, and I think that is eventually what we will see. However, the next couple of weeks could be negative, as the Bank of England has thrown a monkey wrench into the situation as suggesting that the interest rate hikes are tied to any particular timeline suggests that they aren’t as hawkish as once thought.
If we did breakdown below the 1.3650 level and the uptrend line, then I think that this pair unwinds rather rapidly. That would probably coincide with some type of major risk off event, such as an escalation of conflicts in places like Syria, or perhaps a trade war between the United States and China. In general, I think that the market should continue to find buyers, but we may need to build up a bit of momentum to the upside first via value.
GBP/USD Video 23.04.18
This article was originally posted on FX Empire
