As we are getting closer to the Brexit deal, things will get interesting in this pair. I currently favor the upside longer term, but the downside I think is probably where most short-term traders are focused. Because of this, I anticipate that the market will test the 1.28 again, and then possibly the 1.2750 level, which I think will be rather significant. If we do break higher, the next major resistance barrier will be the one point tonight handle, followed by the 1.30 level, which of course is psychologically important, as well as structurally on longer-term charts. That being said, I think that we will continue to see a lot of volatility in headline risk coming out of the United Kingdom.
I think longer-term traders are starting to line up based upon value, so this is a very interesting place to be involved in the cable pair. I would be very cautious about putting too much money to work right now, but I do think that we will eventually see the buyers prevail in this market. Needless to say though, this is going to be a very difficult and scary market at times. However, it’s the most uncomfortable of trades that tend to make the most money. I believe currently we are starting to see large money flow into the British pound, as it represents a lot of value. When you look at historical charts, we are at extreme lows.
GBP/USD Video 27.08.18
This article was originally posted on FX Empire
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