FXEMPIRE
All
Ad
Advertisement
Advertisement
Christopher Lewis
Add to Bookmarks
GBP/USD daily chart, August 06, 2018

The British pound has tested the 1.30 level, an area of significant support on longer-term charts. By doing so, I think it’s found a bit of a short-term bottom, and we could see a bit of a bounce from here. However, there is a lot of noise in the market, but after the jobs neighbor command on Friday, it looks as if there isn’t any appetite to put a lot of money to work. It is because of this exact reason that I think we will probably bounce. However, if we do close below the 1.29 level, that would be a massive sell signal, perhaps reaching down to the 1.25 handle.

Advertisement
Know where GBP/USD is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

I believe that if we rally from here, there is a lot of noise above at the 1.31 handle that will be dealt with, and difficult to overcome. However, if we do then I think the British pound will continue to rally towards the 1.32 level after that. This is a market that will continue to be noisy, as there is so much in the way of headline risk out there when it comes to the British pound. Ultimately though, I do think that we bounce from here, or at least maybe lower levels. Quite frankly we are at very historically cheaper levels, and I think ultimately people will look at it as a buying opportunity. I know that a lot of the longer-term traders I speak to have been approaching this market as such.

GBP/USD Video 06.08.18

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker