The British pound has rallied slightly during the trading session on Tuesday as we continue to see a lot of volatility in this market. All things being equal, this is a pair that should continue to see a lot of noise, and with the massive selloff that we have seen it’s likely that there are a lot of skittish traders out there. However, we are right in the middle of the bullish flag and therefore there should be a ton of support in this general vicinity and extending down towards the 1.28 level. While we have seen a massive selloff, the reality is that the move was probably exacerbated by both the time of year and the fact that a lot of traders would have been looking for profits at that point.
GBP/USD Video 26.12.19
If the market breaks above the 1.30 level, it’s very likely that the British pound will continue to go higher, and therefore allow for a move back towards the 1.33 level, and then of course the 1.35 level again. To the downside, if we were to break down below the 1.28 level then it’s likely that the market will probably go looking towards the 1.25 level after that. I don’t necessarily expect that to happen, but it is a possibility that you should keep in the back of your mind. Overall and longer-term, we are still very bullish, so I don’t have any interest in trying to fight the overall trend. A simple a matter of patience is what is probably needed.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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