The Pound has gained quickly and has kept its added value. The Bank of England and Governor Mark Carney sparked buying of the Pound last week, and it is
The Pound has gained quickly and has kept its added value. The Bank of England and Governor Mark Carney sparked buying of the Pound last week, and it is testing important resistance entering today’s trading.
The Pound has traded in a spectacular manner the past week. It has attained new highs and is now perched near important resistance. The British currency is trading slightly below the 1.36 juncture against the U.S Dollar.
The Bank of England lit a fire under the Pound last week with its bullish rhetoric. And today Governor Mark Carney will speak in front of the International Monetary Fund.
A long-term perspective of the Pound shows it has passed last year’s summer values and is now knocking on the door of values which occurred in the immediate aftermath of the Brexit vote.
The Pound will be tested at this level. With the U.S Federal Reserve looming in the shadows on Wednesday, traders may stay cautious in the short-term.
The Pound could find additional buyers if sentiment remains strong that the Bank of England will raise its interest rate in the near term. A very long view of the Pound shows a window of opportunity.
Downside risks still hover for the Pound because of Brexit worries. However, traders may continue to be attracted to the British currency and look for upside potential.
In the short term, we believe the Pound may be positive. Mid-term and Long-term we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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Yaron has been involved with the capital markets since 1998. During the past 16 years, Yaron has been a day and swing stocks trader in the American market. Yaron has founded and made successful investments into businesses spanning exciting industries – from apparel to restaurants and bars, to high tech, medical technology, and education.