British Pound at the Top of Range

The British pound has initially tried to rally during the trading session on Friday but gave back the gains to show hesitation. The market will continue to be somewhat range bound unless we get some type of major shift in attitude, as there is a major downtrend line just above, which of course we have been paying attention to for quite some time. With that in mind, I think we continue to go back and forth but it is worth paying attention to the possibility that a breakout could lead to a huge push higher.

GBP/USD Video 21.02.22

Underneath, the 1.35 level is an area that a lot of people will be paying attention to, as it has been supportive multiple times and of course we have the 50 day EMA in that same neighborhood. We have been going somewhat back and forth for a while, so it does make a certain amount of sense that eventually we find the inertia to break out but the way the market is behaving during the day on Friday does not suggest a lot of confidence quite yet.

Short-term trading is probably how you are going to have to play this market, because quite frankly it does not seem as if it has anywhere to be. That is probably going to be the case for a lot of markets, because quite frankly we continue to get thrown around by headlines quite drastically. As long as that is going to be the case, it is difficult to put a lot of conviction into anything at this juncture.

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