Yahoo Finance Tactics and Analysis, August 23, 2017 – Pound Ready for Next Big Move
The Pound has been put under plenty of pressure in the short-term and is testing important support. However, the Pound may have been oversold and traders may be tempted to speculate on gains.
What’s Next for the Pound?
Yesterday’s trading brought the Pound up against important support level against the U.S Dollar.
The 1.28 level is a psychologically important mark when looking at a short-term chart.
The Pound has seen a wave of reversals the past week, but has not been able to retrace back to its better values from early August, and has certainly not approached the strength it had in late July.
Pound Will be Tested Soon
However, while Brexit talks continue to affect investors, the Pound has still been able to maintain some of the gains it made in the early summer.
If the Pound can hold its current price levels, there is a reason to suspect it has the potential to climb higher again. The next few days of trading will be very important for the Pound.
Oversold in the Short Term?
Two important points are the U.S. Federal Reserve is likely to continue to be cautious regarding an interest rate move in the mid-term. And U.K economic data has continued to show it can turn in results which are sufficient.
Traders who like speculative positions may consider buying the Pound at its current juncture above 1.28 against the U.S Dollar, with the belief the British currency has been oversold the past week.
In the short term, we believe the Pound may be positive. 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
