The British pound continues to drift lower during Friday session
The British pound has drifted a bit lower during the session on Friday, as we continue to test the 1.40 level for support. I believe that the market should continue to be a bit noisy, but if the 1.40 level can offer support, this might be a nice buying opportunity. I think that would be confirmed if we can break above the 1.40 level. Otherwise, if we break down below the 1.40 handle, I think there’s plenty of support underneath, and that longer-term traders will look to the uptrend line underneath that is closer to the 1.3650 level. That offers a short-term selling opportunity, but I would pay attention to the US Dollar Index for direction.
I believe that the 1.43 level will be targeted if we can break out to the upside, and quite frankly if you are willing to put just a small bit of risk on in the Forex markets, you could try to play for a bounce from the 1.40 level. I think that the British pound will continue to try to go higher, but recently we have had a bit of a shock to the system. The rising interest rates in the United States of course helps the US dollar, but I also believe that the British pound will continue to try to break out over the longer term. At this point, it becomes a question as to whether we should start buying now, or later.
GBP/USD Video 23.04.18
This article was originally posted on FX Empire
