Wednesday, August 24, 2016

The British Pound Continues Rising – Its Target Is 1.3300

As bad as the news coming out of the UK were after the referendum, there is no way for the British pound to only keep dropping. The market does not abide movement in one direction only.

So after the huge drop came the returning relative sense of normalcy on the market, and, naturally, the GBP had to start moving to the upside, even if it was just a correction (for now at least).

The move to the upside began from 1.2865 and has continued for nine days now.

There are only around 60 pips left until GBP/USD reaches the resistance at 1.3300, which the pair will likely climb tomorrow. I think it is not very likely for the pair to do that today. In my opinion, we will likely see a sideways consolidation until the end of the American session today and during the Asian one as well, and tomorrow we can expect a new move north.

I think I will close my long positions at this level and I will wait and see how this pair will behave. There is a possibility it will continue rising, but it is still too early to think about using that.