The British pound initially fell during the day on Friday but turned around to show signs of strength as we rallied again. This market is testing a previous downtrend line that had been broken above, so this of course is an area that will attract a lot of attention. That being the case, it makes sense that we have had a decent reaction for the session. We have the 50 day EMA below, and the 200 day EMA above. Those are crucial moving averages that will attract a lot of technical attention. Beyond that, the market is at historically cheap levels, so I do think that there are a lot of value hunters out there trying to get involved.
GBP/USD Video 11.02.19
We obviously have a lot of concerns when it comes to the Brexit, but quite frankly I think we are getting to the point where pretty much negativity has been priced in. It seems as if every time we get a headline, the markets will move first and then try to figure out what it means later, leading to a lot of false moves. However, one thing that is becoming more apparent is the tenacity of the buyers, so therefore I think that they will prevail in the end based upon that alone. I would target the 1.32 level initially, but I think 1.33 and more importantly the 1.35 level will be rather interesting as well. As far as selling is concerned, I don’t have much interest in doing so, at least not anytime soon.
Please let us know what you think in the comments below
