The GBP/USD pair rallied during the session on Monday, jumping back above the 1.48 level. This was the bottom of a significant support zone, so I think that we are more than likely going to see quite a bit of resistance all the way back to the 1.50 handle. By recognizing this, I believe that you can take advantage of the longer-term downtrend. After all, the US dollar is without a doubt the strongest currency in the world right now, and as a result it makes sense that we do continue going lower. However, I don’t know exactly where this is going to present itself as a trading opportunity again.
What I do know is that the 1.50 level to the upside should be massively resistive, and as a result I think that waiting for a negative for resistive candle between here and there is going to be the best way to trade this market as it shows that the downward momentum continues. Regardless, I don’t really see much of a chance of going long as even above the 1.50 level is massively choppy at the very least. In fact, I think that there could even be a bit of resistance all the way to the 1.52 level.
Sell and sell again
I believe that you can sell and sell again when it comes to this marketplace, as every rally should offer value in the US dollar. After all, everybody wants the on the US dollar, and while the British pound is a necessarily the worst currency in the world, it is in the US dollar, and that’s all that matters. With that, I believe that this pair will continue to head towards the 1.45 level given enough time, which of course is the next large, round, psychologically significant number. It’s also supportive on longer-term charts, so it makes sense that we will test it. Again, as far as buying is concerned we would have to get above at least 1.52 and order for me to even consider it at this point.
