Speculative Pound for the Holidays
However, the British currency has shown stability early this morning and it could continue to attract buyers with a taste for short-term speculation during the holiday season.
Pound Holding onto Ground Early Thursday
The Pound may prove to be an interesting trade today and tomorrow. The British currency has held onto its gains made early this week and is near 1.3360 against the U.S Dollar.
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However, internal political concerns have again hit Prime Minister Theresa May, as a closely allied minister was forced to resign yesterday in the wake on an investigation.
Higher Values as Political Battles Mount
The Pound has been able to attain higher values in the mid-term, and investors may continue to think it will show the ability to produce another climb even as political battles rage.
Short term traders need to take into consideration trading volumes will become tricky today and tomorrow, as volumes thin before the holiday season comes into force.
Speculative Resistance in Focus for Pound Traders
Resistance around the 1.3400 level for the Pound against the U.S Dollar is within sight and speculators may be anticipating a test of these heights.
Traders should use risk management when placing trades before Christmas to ensure against sudden spikes, but they may want to be part of the perceived strength the Pound has been displaying.
In the short term, we believe the Pound may be positive. In the mid-term and long-term, we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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