The GBP/USD pair did almost nothing on Friday as the West celebrated Good Friday. Not a big surprise, there wasn’t much in the way of liquidity as far as banks were concerned, so the markets really didn’t have much of a chance to move. With that being the case, I will get the shooting star from the Thursday session as the real telltale sign of what’s about to happen.
For me, this is a “buy only” market. I would either get a buy signal, or I will be bothered to be involved. I recognize that there is a short-term selling opportunity if we break the top of the shooting star, as we could pull back to the 1.67 handle where the market features a couple of hammers. However, for me it’s not worth risking 60 or 70 pips when you can just go with the trend and pick up much more in the way of profits.
Pullbacks should be momentum building exercises.
I think that any pullback at this point time simply the market try to build up enough momentum to breakout above the aforementioned 1.68 handle. Above the 1.68 handle I think the market heads to the 1.70 handle given enough time. That is a major large, round, psychologically significant number, and as a result the market will be attracted to it. I don’t how long is going to take, but I do fully anticipate see this market go to that level before it’s all said and done.
I think the 1.65 level is the “floor” in this marketplace, and therefore it isn’t until we break down well below there that I would consider selling. I think of the British pound continues to go much higher, and that ultimately this will be a “buy and hold” market, but it might take a while to get to that point as there are plenty of headlines out there that have made investors nervous from time to time, and as a result will have them running back towards the US dollar, even when it isn’t warranted against another currency.
