The British pound has rallied a bit during the trading sessions that made up this previous week to break above the 200 week EMA. We also have seen a lot of support at the trendline, so as long as we can stay above it, I believe that the British pound may continue to go further. It should be noted that there is a lot of selling pressure above, so I think we will continue to see a lot of “back-and-forth” type of trading so unless you are willing to invest in a currency, this is of the type of pattern you like trading. The weekly undulations will continue to be a Titan enough factor when it comes to inertia, meaning that we will eventually see some type of big move.
GBP/USD Video 27.01.20
Looking at the last couple of weeks, you can see that we had formed a couple of shooting stars, but now it seems like we are trying to do everything we can to break above it. If we can break above the shooting stars, then it most certainly opens up the idea of a move to the 1.35 handle. A break above that level then allows the market to go another 500 pips. All things being equal though, this is a market that should continue to be very choppy and noisy, so if you are going to take that longer-term trade, it’s very difficult to do so if you are going to be put in a larger position in. Small positions to the upside are possible, adding along the way. If we do break out below this trendline, it’s likely that we could go down to the 1.28 region.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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