- The British pound initially pulled back just a bit to look for support during the trading session on Tuesday as we are reaching towards the 200 day EMA.
- It turned around and see a lot of buyers jumping into the market to break above the 50 day EMA.
- The 1.27 level above is an area that I think a lot of people will be paying close attention to.
Breaking above that opens up the possibility of going to the top of the overall consolidation area that extends all the way to the 1.28 level. Short-term pullbacks continue to be buying opportunities, I think, at least for the short-term, but really at this point, one of the biggest things that we need to pay the most attention to is the fact that Independence Day is on Thursday in the United States, so that will certainly have a major influence on liquidity.
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On a Breakdown
If we were to break down below the 200 day EMA, then it opens up a move down to the 1.25 level, which is the bottom of a consolidation range. Whether or not we can break out of this range remains to be seen, but we also have UK parliamentary elections on Thursday, so that could cause some volatility as well.
That will be especially true considering that we should be getting most of the results, probably during the US session, which means there'll be a severe lack of liquidity in a market that could be very wild. So, with that being said, I think the next 24 hours could be very blase, but Thursday could be a big deal. Friday, of course, has the jobs number in America, so that could be a big deal as well. We are right in the middle of this overall consolidation range between 1.25 on the bottom and 1.28 on the top, so therefore I think we remain fairly neutral, but I do think we are leaning slightly to the upside.
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