The British pound has found plenty of support during the trading session on Tuesday, and now on Wednesday looks like it is seeing more of the same. With that being the case, it’s very likely that we will eventually make a move to the upside. Ultimately, I do believe that the market is going to find enough momentum to finally go much higher. After all, when you look at this chart you can see that we broke above the downtrend line, pulled back to it to the 50% Fibonacci retracement level, and then bounced even higher than that.
GBP/USD Video 07.03.19
I currently believe that the 1.30 region is a bit of a floor in the market, and I have been building up positions very slowly, and fractional pieces so that I can ride out the volatility. This is a longer-term move though, and they quite often take quite a bit of time to get things together. Once we can break above the 1.33 region, then it opens the door to the 1.35 handle. If we broke down below the 1.30 level though, the market could go back towards 1.27 level. I think that obviously would have a lot to do with some type of negative Brexit headline, but right now it looks like things are moving in a slightly better direction. Remember, markets are forward-looking mechanisms, so they are trying to anticipate what happens next.
Please let us know what you think in the comments below