British pound drifts lower during quiet Wednesday session

The British pound pulled back a little bit during the trading session on Wednesday, reaching down towards the 1.3925 level, an area that has been supportive previously. However, this is a short-term opportunity for a bounce, and not something that I’m overly excited about. If we break above the 1.4025 level, then I think the market is ready to continue going higher. Alternately, if we break down below the 1.39 level, the market then goes down towards the longer-term uptrend line, or perhaps even the 1.3650 level.

The British pound of course is getting a bit of a selloff going as Mark Carney suggested that the Bank of England was farther away from raising interest rates than people had originally thought. Because of this, it took some of the bullish attitude out of “sterling, but I think that it is only a matter of time before we get involved to the upside. If we do fall from here, it’s a short-term selling opportunity, but I think that ultimately the uptrend will hold itself, at least soon. If we were to break down below the 1.3650 level, the market comes undone and goes much lower at that point, perhaps to the 1.35 handle, or even lower. I think that you will need to be cautious about trading this market, at least until we break the resistance above, or the support just below current trading. Small position sizes are recommended, and then adding once the market proves itself to agree with your trade.

GBP/USD Video 26.04.18