British Pound Finds Support Against US Dollar

The British pound has fallen a bit during the course of the trading session early on Wednesday, only to turn around and find plenty of support in the area in order to make sure that the potential uptrend is holding. Ultimately, it comes down to whether or not we can continue to see the momentum come into play, but right now it still a little bit of an open question. Clearly, the session on Wednesday did a lot to help the overall situation, so if we can break above the top of the candlestick on Wednesday, I will be a buyer again. At that point, I anticipate that the market goes looking towards the 1.37 level above.

GBP/USD Video 20.01.22

To the downside, if we were to break down below the lows of the Tuesday session, I think that opens up a move down to the 1.35 handle, but as things stand right now the British pound has been one of the strongest currencies out there as it is believed that the British economy is going to recover much quicker than others, and of course the Bank of England is expected the Heikin Straits rather soon. With this being the case, it is the British pound that is giving the US dollar the biggest fight right now, so I think we may continue to see that play out. After all, this has been a huge move to the upside, and it certainly suggests that it should have a bit of follow-through. All things been equal, this is a market that I think continues to be noisy but overall looks very positive to me.

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