The GBP/USD pair shot higher during the course of the session on Friday, as we attempted to test the 1.55 level. This is an area that has been rather resistive lately, and having said that, it’s not a huge surprise that the markets struggled to get above there. With that being the case, the market will certainly have quite a bit of momentum to the upside if we can get above that area, probably reaching towards the 1.57 level or so.
I do recognize that we could pull back from here, but quite frankly I look at that as value at this point in time. After all, the last couple days have been rather impulsive. That of course means that there should be quite a bit of buying pressure underneath and with that I feel that that the buyers will continue to push this market.
Buying dips
At this point in time, I am buying dips in this pair as I believe the bullish pressure will eventually send us much higher. In fact, I don’t even have a scenario in which I am willing to sell this market until we get well below the 1.52 level. Because of this, I believe that looking towards shorter-term charts might be the way to go going forward. After all, the one thing I expect to see is quite a bit of volatility in the Forex markets in general. One of the big things that is moving this market in my opinion is the Federal Reserve and its inability to stand by its guns. Because we have such a soft American central bank, it will be a move to try to drive down the value of the US dollar overall.
The candle formed on Friday was rather impulsive, so that of course is a positive sign for the British pound as well. With all of these things above listed, I have no interest whatsoever in trying to fight what appears to be a strong upward movement.
