Christopher Lewis
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GBP/USD daily chart, September 18, 2018

The British pound has rallied again to kick off the week on Monday, breaking above the 1.3125 level again. By making a fresh, new high, it tells me that we should continue to go much higher, and that we are trying to break out for the longer-term move. Any sign of a Brexit deal will send this pair much higher plain and simple. I think at this point it’s likely that the British pound goes higher given enough time, but I also recognize that it’s not necessarily going to be the easiest trade to take. Clearly though, there is an upward proclivity, and as a result I don’t have any interest in shorting this pair. I think you should start to look at pullbacks as value and treat them as such. I’d be buying pullbacks at this point, and I don’t think that it’s going to be the easiest trade to hang onto, but this is Where Eagles Dare, meaning that if you are going to make massive profits, you’re going to have to be uncomfortable.

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I believe that the 1.30 level underneath should be supportive, so with that being the case if we break down below there I would start to rethink a few things, at least in the short term. Regardless though, I would say that the upward momentum is a thing that’s probably here to stay longer term, because the British pound is so historically cheap at these levels. I would add as the trade goes in my favor.

GBP/USD Video 18.09.18

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