The British pound continues to chop around

The British pound fell initially during the trading session on Thursday, reaching down towards the 1.4040 level, before bouncing a bit. We have rolled over since then though, and we may find this market looking towards the 1.40 level underneath for massive support. I believe that the market will continue to be very noisy and sloppy, so keeping a small position is probably the best way to go, as it gives you the ability to ride out the volatility that will certainly see over the next couple of sessions. However, a hard bounce from the 1.40 level would be very interesting for me, and I would be more than willing to go long.

The alternate scenario is that if we break above the 1.41 level, that would be a very bullish sign as well, and send the market looking towards the 1.42 level above, which has been significant resistance just a few sessions back. I do believe that we are trying to build up a certain amount of momentum to finally go higher for the longer-term move, but right now we are in a phase where we are trying to build up enough confidence to do so.

If we were to break down below the 1.40 level, we could go down to the 1.39 level next, which would coincide roughly with the downtrend line that has been important in the past.

GBP/USD Video 30.03.18