The GBP/USD pair initially tried to rally during the session on Friday, but as you can see gave back all of the gains as it appears the 1.67 level is starting to offer significant resistance. With that, I do think that this pair is going to be under a little bit of selling pressure in the short-term, but ultimately I think that eventually the pair turned back around as I believe there is a significant support band all the way down to the 1.65 handle. I recognize the fact that the Friday candle is in fact a shooting star, so this suggests that there is still a significant amount of selling pressure.
With that being said, I always prefer to trade with the trend if I can, and the trend is certainly been up for some time now. However, it has been choppy and erratic from time to time. With that, it doesn’t really surprise me that the market would seem ready to pull back and contradict what we have been doing recently.
The British pound continues to remain strong overall.
The British pound continues to be relatively strong anyway, and as a result I don’t want to sell it. Granted, the US dollar of course is going to be one of the more difficult currencies to appreciate against, but I do think that ultimately that this market has decided which direction wants to go for the longer-term. The 1.70 level is still where I believe this market goes to eventually, and because of that I am simply waiting for signs of support in order to go long. We don’t have that yet, but I do believe that over the next couple of sessions we will start to see buyers step back into the marketplace.
With that being said, I am on the sidelines of the moment, but more than willing to buy supportive candles. I would not only buy daily candles, but I would probably be comfortable buying for our candles as well. At the end of the day, I believe that the 1.65 level will be massively supportive.
