British pound has a violent session on Wednesday
The British pound has pulled back to the 1.4175 handle, an area that has been support in the past, and as we have bounced so significantly from that level, I suspect that we are going to continue going higher. I recognize that the 1.43 level above is resistance, but once we break above there, the market should then go to the 1.4350 level, and then the 1.45 handle after that. I anticipate that the market will continue to see a lot of volatility, but as people were worried about the British economy facing deflation, the Bank of England looks likely to continue to raise interest rates, which of course sends the British pound much higher.
If we were to break down below the 1.4175 handle, then I think the market goes down to the 1.40 level after that. The 1.40 level is a major support level, and I think that given enough time a breakdown below there could unwind this market rather significantly. However, I also recognize that seem to be very unlikely, as we have seen so much in the way of a return to bullish pressure. I think that given enough time, we will probably break above the extraordinarily bearish candle from early in the session, and I think that will bring in even more money to the market. Ultimately, I believe that we will continue to see buyers be attracted to these dips, and therefore we should continue to see plenty of buying opportunities for those who are patient enough.
GBP/USD Video 19.04.18
This article was originally posted on FX Empire