This isn’t to say we can’t rally, but it’s not until we break above the 1.3133 level that I would be interested in buying. I think that what we are seeing more than anything else is a simple drift lower as we have no interest in owning British pound because there is no catalyst to do so. Quite frankly we got the extension of the Brexit for six months, and therefore we probably will be waiting for some type of announcement to decide what to do next. I suspect that we will probably drop , looking for more support at a lower level. I would be a buyer of value closer to the 100% level, but if we did break out to the upside it’s very likely that we could go to the 1.3350 level.
At this point though, it looks as if the US dollar is starting to show signs of strengthening against the lot of other currencies and with no reason to suspect that the British pound is going to get good news about the Brexit anytime soon, it’s very likely that there will be a simple lack of interest here more than anything else.