British pound pulls back on Thursday, only to find support
The British pound has initially fallen during the trading session on Thursday, reaching down towards the 152 level again. This is an area that has been support and resistance more than once, so it makes sense that we will eventually rally enough to reach towards the 153.50 handle. That’s an area that has been resistive several times, but I think that longer-term are going to go towards the 155 handle, an area that has been important more than once. I believe that the market should continue to be a situation that buyers will take advantage of these dips based upon value. I believe that if we can stay out of a trade war between the United States and China, this pair should continue to go higher.
Beyond that, I believe that the earnings reports of the United States helping the market going higher should continue to be the norm, as stock markets rally. I think that the 150-level underneath is the massive “floor” underneath, and I believe that a breakdown below there would be very negative indeed. However, it looks likely that we are going to stay above there, and I think that we will eventually see buyers take control. The 155 level of course will be a significant barrier but breaking above there should send this market towards the 160 level, which of course has a large, round, psychological aspect to it. I believe this market continues to find buyers.
GBP/JPY Video 20.04.18
This article was originally posted on FX Empire
