British pound rallies during Thursday session
The British pound went back and forth during the trading session on Thursday, with a definite upward proclivity. The British pound rallied against most currencies in the Forex world, and as I record this video, it looks as if we are starting to see buyers underneath and I think that we will continue to extend to the upside. I believe that we are going to go looking towards the 1.43 level again, which was the scene of a massive turn around in the market. I believe the dips are to be bought, and that the “floor” in the market is probably somewhere near the 1.40 handle.
Short-term pullbacks continue to offer the value the traders are looking for, and if the markets do pull back, I am looking for an opportunity to build up a small position and then add as it goes along to the upside. However, when I look at this chart, I suspect that we are more likely to see buyers than sellers, so I think that we will see volatility, but I think that the British pound has proven itself to be much more resilient than many traders thought.
Your capital is at risk
In fact, it’s not until we break down below the 1.40 level that I would consider selling this pair, and that doesn’t look likely at all. I recognize that the 1.43 level will be resistive, but once we break above there we should then go looking towards the 1.45 level which is my longer-term target. Needless to say, that will take quite a bit of time.