British Pound Probing Top of Range

The British pound has initially pulled back during the trading session on Thursday but then turned around to show signs of life again. By doing so, it looks as if the market is going to test the top of the daily range, something that is a bit difficult to deal with, simply because we have seen so much pushback in this general vicinity. If we can continue to go higher and perhaps close above 1.3650 on the daily candlestick, that might be the signal that we are finally going higher. If we do not, then is going to be more of the same noise that we have been dealing with for the last couple of weeks.

GBP/USD Video 18.02.22

To the downside, the most obvious area to pay attention to is the 1.35 level, as it is a large, round, psychologically significant figure, an area that has already proven itself to be important, and then of course has the 50 day EMA hanging about at the same time. That typically means that you are going to see some interest in this vicinity. As long as we can stay above there, then the British pound remain somewhat bullish or neutral. If we were to break down below that level, then I think we could go looking towards the 1.33 area or so to the downside. Regardless, I think this is going to be a very volatile market going forward, just as it has been over the last couple of weeks. It is more or less short-term trading that you are going to be forced to do unless of course we can get that breakout to the upside.

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