The British pound has gone back and forth over the last couple of days, and at this point it’s very likely that we will continue more of the same as the Brexit will continue to make the British pound a place of great confusion. However, we have seen a lot of support previously, and I think that will more than likely continue to be the case as I think there aren’t that many people left to sell the British pound at this point. We are getting within a couple of months of the finalized Brexit deal, and as soon as we get some sense of certainty, I imagine that people will be more than willing to buy the British pound. I also believe that the so-called “smart money” is going into the British pound at this point and starting to put money to work. After all, there is a lot of value to be had here, especially on longer-term charts.
At this point, I think the 1.28 level is going to offer support, assuming we even go that low. The 1.2750 level is even more supportive, so I think it’s only a matter of time before buyers will return. The 1.30 level above is a major resistance target, and I think that it’s far too enticing for traders to forget about. At this point, all we need is some good news involving global commerce, the United Kingdom, or anything else to push this market higher as it will drive people away from the US dollar.