- The British pound has seen a little bit of upward pressure during the trading session on Thursday again, but we continue to just hang around in this area.
- And what I find particularly interesting about this is that we had formed three shooting stars in a row on the weekly chart, which of course is a very negative turn of events, but we are just fighting and fighting and fighting.
- I still believe that the downside is very likely going to win this out.
- But if we were to break above the 1.35 level, then the British pound probably skyrockets at that point, mainly due to the idea that I, I don't know many times where I've seen a triple shooting star on the weekly chart get violated.
Supply Above…
So, one would have to assume there's a lot of selling pressure and supply near that 1.34 level. We'll have to wait and see, but that is something that I'm watching very closely. So, if we break out to the upside, I'll take my small loss and move on, start looking to the upside. On the other hand, if we do drop from here, I think a breakdown below the 50 day EMA really gets things accelerating to the downside, perhaps to the 1.30 level.
Keep in mind that the US dollar is oversold. So, this may just be a little bit of a recovery rally and a move to the 1.30 level wouldn't exactly be massive as far as a huge change.
But when you look at the charts from a longer term standpoint, you can see that this is basically the top of the median range for seven, eight years. So, at this point in time, it wouldn't be particularly shocking if the pound rolled over.
Ready to trade our GBP/USD Forex analysis? Here are the best regulated trading platforms UK to choose from.