The GBP/USD pair fell initially during the course of the session on Friday, but found enough support just above the 1.58 level to turn things back around and form a hammer. This hammer of course suggests that the market is going to continue to find buyers and as a result I think that the market can only be bought at this point. I also think that there are significant amount of buyers all the way down to the 1.57 level. With that, I am essentially “buy only” at this point in time.
I believe that the market is heading to the 1.60 level given enough time, and as a result I am a buyer every time this market dips. On top of that, I believe that adding to a core position is probably the best way to play this marketplace. With that, the market looks ready to be one that short-term traders will push around but I think with all the noise above it is going to be very difficult.
British pound strengthening everywhere
The British pound is strengthening everywhere as far as I can see, as most pairs with the GBP in it are showing Pound strength. I think that will be the way going forward, and at this point in time the British pound is by far one of my favorite currencies. With this, it is probably only a matter of time before this market goes much higher, but I do recognize that with the summertime liquidity issues and the noise above that it makes sense that this market will simply be one of these markets that are very difficult to deal with. You have to think more long-term than anything else, and as a result we believe that the patient traders out there will be the ones rewarded.
With this, I don’t really have any scenario in which I want to sell this market, as the breakout above the 1.58 level certainly significant overall, and with that I believe that the entire focus of the market has now shifted to the upside.
