The British pound has rallied quite significantly during the trading session on Thursday, breaking above the 50 day EMA. By rallying the way we have, it certainly looks as if we have quite a few buyers in this market. The 1.35 level looks to be targeted, and I do think it will cause a certain amount of resistance. That being said, we are getting a bit overextended, so I think 1.35 is probably your target. Whether or not you can sell there is a completely different question, because quite frankly this has been such a strong move.
GBP/USD Video 24.12.21
This time a year has a lot of liquidity issues, and I might be part of what we are seeing here in the British pound, although I typically see these moves after Christmas. Nonetheless, I am the first person to admit that I missed the trade, and I will just have to let it go at this point. Chasing the trade is a great way to lose money, and that something that I do not want to do obviously. To the downside, the 1.33 level should be supportive, and then of course the 1.32 level which is where we bounced from. I would anticipate a lot of noisy behavior on a pullback, because quite frankly moves like this at this time of the year tend to be sketchy at best. I believe looking for value on dips might be the best way to trade this market if you absolutely have to. To be honest I will probably just on the sidelines.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
