The British pound broke down significantly during the trading session on Thursday again, reaching down towards the 1.28 level. That is a relatively negative turn of events, but this is an area where we could see some support come into play. However, with the massive amount of bearish pressure that we have seen, I much more comfortable waiting for a supportive candle stick to start taking advantage of what I believe is a cheaply priced pair. In other words, I will need to see a daily candle stick that looks like a hammer or something like that.
GBP/USD Video 17.05.19
This area that we are currently trading and could be supported, and if it is and I believe that the 1.27 level could be as well. Ultimately, this is a market that will probably continue to be rather resilient, all things considered. Right now this is probably more about the US dollar than anything else as the Brexit has been pushed to the back burner.
The fall has been rather precipitous, so there’s no need to try to catch a falling knife. Give the market 24 hours to stabilize and give you a reason to start buying. That of course is the prudent trade. Trying to front run what’s about to happen next is a great way to lose money, trust me I have done it more times than I care to admit over the years. Simple patience can be a very profitable strategy at this point, as sooner or later the selling pressure will need to abate and we could go looking towards 1.30 level, possibly even the 1.32 level after that.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- USD/JPY Price Forecast – US dollar finding buyers
- U.S. Dollar Index Futures (DX) Technical Analysis – May 16, 2019 Forecast
- Silver Price Forecast – Silver markets fall hard on Thursday
- EUR/USD Price Forecast – Euro rolls over yet again
- Earnings Lift U.S. Equities, Trade Tensions Cap Gains, Strong Data Supports Market
- Gold Price Prediction – Gold Slides as Safe Haven Concerns Dissipate