The British pound has fallen a bit during the trading session on Thursday but found enough support at the 1.22 level to turn around and bounce early in North American trading. At this point though, we are still very much in a downtrend and this could be a nice selling opportunity if you are patient enough to wait for that situation to present itself. The 50 day EMA is above and it should offer a significant amount of resistance. But we also have the 1.25 level above that could offer a significant amount of resistance as well. With that being the case, I’m simply looking for a rally and then signs of exhaustion that I can take advantage of.
GBP/USD Video 26.08.19
It does make sense that we have bounced a bit from the lows, because it was just above the crucial 1.20 level. That is a major level that people will be looking to for a guidepost, and I am the first to admit that we are a little overextended to the downside. That being said, I fully expect this market to go down below that level and go looking towards the 100% Fibonacci retracement level. I believe that the 1.15 level will be the next major target once we finally get the break down, but in the meantime we are simply going to be better served looking for signs of exhaustion on shorter-term charts in order to take advantage of the longer-term trend.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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