As financial common sense slowly returns to the British government, so too will stability to the pound. While the UK markets have a long way to go to restore credibility and trust, traders are beginning to return the pound. The FOMC announcement today will move the markets and trying to predict the capricious nature of the Fed is impossible, but the technicals are indicating the pound may set for a run up. There is an inverse head and shoulders and clear volume accumulation around 1.13 with the next strong overhead resistance at 1.20.
Trade:
1) Open position here with a stop loss at 1.12. 2) If the market declines over the next few days, add to the position with the last level being 1.126. 3) Take profits 1.195.