The British pound has rallied during the trading session on Monday but gave back a bit of the gains at the 1.28 level early on Monday. This is an area that you can see has offered resistance in the past, so the question now is whether or not we will roll over?
Even though there is a potential bottom to the downtrend at the 1.25 level underneath, pulling back at the 1.28 level makes sense because we have previously. The question is whether or not we can break above there, or if we will roll over again. If we rollover, then we could very easily go back towards the bottom again. If we make a “higher low”, then it means that the market is still in the process of building a base.
If we can break above the 50 day EMA, and the 1.28 handle above, then it’s very likely that we could go to the 1.30 level. That would be a very bullish turn of events and could send the British pound much higher. Ultimately, the question that you have is what’s more important: the Brexit and all of its nonsense, or the Federal Reserve? Remember, the Federal Reserve is stepping to the sidelines and trying to switch to more of a financial easing stance, and that should work against the US dollar in general. However, it really comes down to which one is grabbing the headlines. Currently, it looks like we are starting to run out of steam, so maybe will start to focus on the Brexit again.
Short-term traders that like back and forth range bound systems will probably find this attractive, but you have an obvious stop if you start to short this pair at the 50 day EMA, which of course signals that it’s time to flip the market around and try to pick up about 200 pips.
Even though there is a potential bottom to the downtrend at the 1.25 level underneath, pulling back at the 1.28 level makes sense because we have previously. The question is whether or not we can break above there, or if we will roll over again. If we rollover, then we could very easily go back towards the bottom again. If we make a “higher low”, then it means that the market is still in the process of building a base.
If we can break above the 50 day EMA, and the 1.28 handle above, then it’s very likely that we could go to the 1.30 level. That would be a very bullish turn of events and could send the British pound much higher. Ultimately, the question that you have is what’s more important: the Brexit and all of its nonsense, or the Federal Reserve? Remember, the Federal Reserve is stepping to the sidelines and trying to switch to more of a financial easing stance, and that should work against the US dollar in general. However, it really comes down to which one is grabbing the headlines. Currently, it looks like we are starting to run out of steam, so maybe will start to focus on the Brexit again.
Short-term traders that like back and forth range bound systems will probably find this attractive, but you have an obvious stop if you start to short this pair at the 50 day EMA, which of course signals that it’s time to flip the market around and try to pick up about 200 pips.