The British currency is approaching critical support levels. Risk management is necessary for the coming days.
Pound Approaching Key Support Levels
Current market conditions are testing all traders and the value of the Pound has been confronted too. The British currency is trading below 1.40 against the U.S Dollar.
Important support for the Pound is near 1.38, which is above its September highs, and it is still above its recent relaunch upwards which began in earnest mid-December.
Pound is U.S Centric as Broad Markets Rattle
The Bank of England will be announcing their monetary policy summary on Thursday, but the Pound is trading in a U.S centric mode. Having made significant gains the past month and a half, some of the decline being experienced should have been expected.
The question is what will happen next in the volatile broad markets? The Pound remains valued well and may see more tests as its range searches for equilibrium. And risk management is essential for those who choose to trade in the coming days.
In the short term, we believe the Pound may be negative. The mid-term and Long term we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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This article was originally posted on FX Empire
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