The British pound fell slightly in shortened trading on Monday, as the Americans will have been celebrating President’s Day.
GBP/USD
The British pound has been slightly negative during the trading session on Monday as traders continue to see a little bit of hesitation in this pair. Keep in mind that there is quite a bit of information coming out of the United Kingdom this week, so that could have a bit of an effect on where we go next.
Top Regulated Brokers
With that being said, I am watching very closely at how this pair behaves because the market will obviously have to make a decision given enough time as we are just sitting right in the middle of a larger consolidation area. This is a market that is looking to make a move but still hasn’t really decided where we are going next.
A Larger Consolidation Area
That larger consolidation area is defined by 1.35 on the bottom and 1.3750 on the top. Because of this, I think you have to be very cautious, but I also believe that it is a scenario where sooner or later we need to get moving and make a larger move. Until then, you will have to be cautious.
Short-term traders probably continue to look at this through the prism of short-term back-and-forth trading, but I also recommend that this is a market that you need to have somewhat limited expectations with, at least in the short term.
Longer term we may see a bit of a bigger move, but we would have to break out of this 150-pip range to really get overly excited. In the short term though, there are opportunities that you can take advantage of. It is just that you will have to be nimble and you will almost certainly have to focus on short-term charts to make any headway here.
Ready to trade our weekly forecast? Check out the best forex trading company in UK worth using.