This pair is obviously very sensitive to all things Brexit as the British pound is half of the equation, but at the same time it is also very sensitive to risk appetite overall. Stock markets were pulling back a bit during the trading session on Thursday, and I think this is part of what has been dragging this market down a bit. I also believe that the market participants will continue to pay attention to the headlines coming out of the United Kingdom, but ultimately I think that the stock market has shown just how police the economic picture is, and therefore I think this market will eventually continue to go higher. If we can make a fresh, new high, that’s a buy signal. Beyond that, I think that pullbacks will also offer support of buying opportunities as well. I believe that the downtrend in the British pound is now over, barring some type of shock economic announcement or negativity involving the Brexit.
If we were to wipe out the impulsive move from the session on Wednesday, that would be extraordinarily negative, and I think that would be a horrific side for the British pound and will probably send this market much lower. At this point though, I think it’s very unlikely, and I do believe that the market will continue to grind towards the 150 level above.