- The British pound has seen a little bit of choppy sideways action during the trading session on Thursday, as we continue to see a lot of noise in the market.
- Now, bear in mind, this is also a market that is going to be looking at a lack of liquidity.
- So, it's not a huge surprise that the market really isn't doing much right now.
I do look at the 1.25 level as important though. So, we'll have to see whether or not we can bounce from here. We have tried to do so a couple of times over the last several days but failed. So, the market more likely than not is going to be very quiet trying to build a bit of a base. But if we were to break down below the 1.2480 level, I think that opens up a move to the 1.23 level. I don't necessarily like buying the British pound, but I do recognize that it is maybe a little oversold in this general vicinity. So, a bounce is clearly possible.
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Selling Rallies Still Continues
The market will more likely than not, though, look at that as an opportunity to short the GBP/USD pair again, taking advantage of cheap US dollars. Interest rates in America continue to climb despite the fact that the Federal Reserve is doing everything it can to cut rates, and it just appears that the market doesn't care. So, with that being the case, I think you have a situation where you just simply look at this as a fade the rally type of market and truthfully, that's going to be the case for quite a few U.S. dollar denominated pairs going forward. It is going to be quiet over the next couple of sessions though, so do keep that in mind. I'm not looking for big news or moves at this point in time.
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