The British pound fell slightly during the trading session on Monday, reaching down towards the 1.35 handle. There is a significant amount of support in that area though, and I believe that the buyers will return to push the market towards the 1.36 handle above. This is a market that continues to be noisy in general, but I believe that we are trying to build up enough momentum to finally break out to the upside and continue the overall bullish move. I believe that given enough time, the market will eventually break above the 1.3650 level, sending the market towards the 1.40 level over the longer term. I believe that pullbacks continue to offer value in the British pound, as it seems to be driven more by the weakness of the US dollar than anything else. I also believe that the British pound should continue to benefit from the lack of the collapse of the United Kingdom, that so many people had priced in.
Even if we break down below the 1.35 level underneath, I think that the 1.33 level would be targeted. Ultimately, this is a market that has a massive amount of support at that level also, and an uptrend line that will come into play. Given enough time, this is a market that I think continues a longer-term “buy-and-hold” situation just waiting to happen. I will be buying on dips when that happens, but it’s not until we clear the 1.3650 level that we can go ahead and do that though.
GBP/USD Video 09.01.18
This article was originally posted on FX Empire
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