The only thing you can count on with this pair is that they will continue to be very loud.
The British Pound continues to fluctuate overall, and the 1.32 level continues to cause major problems. We are likely to get some short-term pullback. I’m not necessarily going to start bypassing this market, but I do recognize that we might struggle to see a continuation. The British and Europeans are trying to make things right with Brexit again, and it looks like we’re not going anywhere on that front.
We are likely to see issues with the British Pound so if you are looking to buy the US Dollar you may want to do so against other currencies. We could have some positive Brexit news that would have a big impact on the direction to go up. We could probably go as high as round 1.34, maybe even level 1.35. If we get a Brexit solution, it could send the pound flying high. Overall, however, we have made progress and will likely continue to do so.
On the downside, the 1.30 level below will likely be very supportive, just as the 50-day EMA does. There is a “support zone” below that stretches from the 50-day EMA to the 200-day EMA. If we cross the candlestick top for Monday’s trading session, we will accelerate the rise and continue to rise.
The only thing you can count on with this pair is that they will continue to be very loud. This is a market that currently has a lot of moving parts, so we need to keep our eyes peeled for news from London and the EU. In general, buying dips should continue to work, as it has in recent months.