The GBP/USD pair shot straight up during the session on Monday, testing the 1.6450 area yet again. This is an area that has caused problems for the buyers several times now, but I do think that eventually we will breakout and above it. In fact, I believe that it's all one big resistance area expanding all the way to the 1.65 handle. Above that area, the market will attempt to get to the 1.70 handle, but I don't know if we can reach 1.70 before the end of the year.
Ultimately though, the British pound is certainly one of the strongest currencies that I follow right now, and therefore there's no reason to sell it. Any pullback at this point time should simply be more momentum gathering in order breakout to the upside in my opinion, and therefore I am not looking to sell at all until we make a significant move lower, perhaps, closing below the 1.62 handle, something that does not look very likely.
Federal Reserve and jobs.
I still think that the jobs numbers out of America could be the one wildcard the changes the attitude of this market. However, I believe that we are at least several months from tapering, so I would not be surprised at all to see this market continue to go higher, not only through the rest of this month, but ultimately at the beginning of next year. Keep in mind that there will have to be some position squaring towards the end of the month, so this is why I think that the market will struggle to reach the 1.70 handle in the near-term. I think that the end of the year. Profit taking will simply be one of the hurdles of this pair has to contend with.
I would stick to the daily candle though, simply because the short-term market will probably be a bit too erratic. I think that scalpers might be able to do okay in this market, but quite frankly I think it's better to simply follow the longer-term uptrend than get bogged down in the day-to-day movements.
