The British pound rallied significantly during the trading session on Friday, reaching towards the 1.43 level. That’s an area that has been resistance in the past though, so it makes sense that we pull back from there. The market should continue to be bullish longer-term though, and at this point I’m looking for value.
The British pound rallied during the day on Friday initially, reaching towards the 1.43 level, an area that has been resistance in the past. I think that the market should continue to try to break above there, but it will take several attempts. The 1.42 level underneath should be support, and I think that the buyers will continue to look at this market as one that gives opportunity one of pulls back. The British pound has been one of the better performers against most currencies in the Forex world, and I think it will be any different against the US dollar.
If we do break above the 1.43 level, the market should then go to the 1.45 handle. That level is even more resistive, and I think that it will take several attempts to get above there as well. Ultimately, I think that the British pound will be one of the better performers this year, so I don’t have any interest in shorting. Value is the best way to play this market, and I think that it shows value every time we pull back. The current “floor” in the market is closer to the 1.40 level, so I don’t think that we will break down below there. If we did, that would change a lot of things, but it looks very unlikely at this point as the British pound has been so resilient.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.