British pound has volatile and negative session to test support

The British pound has fallen a bit during the session on Thursday, reaching down towards the uptrend line underneath that has been important more than once. If we can stay above this uptrend line, there is still an opportunity to rally, but one thing that must be clear is that we are struggling to find buying pressure the same time. · FX Empire

Christopher Lewis

Updated Thu, May 17, 2018, 10:53 PM

The British pound has fallen significantly during the trading session on Thursday, reaching towards the upward trend line. The upward trend line of course has been important for months, and I think that if we were to break down from here it would be a major turn of events. This would have the market unwinding rather drastically, and I think the next couple of weeks could be crucial for this pair. I tend to stay away from trading this market, because I think we are about to make a major decision as to where we are going to go longer-term, so I think that if you are cautious enough, you can place a longer-term trade and make a large profit if you are patient enough.

It looks as if the 1.3450 level will continue to be significant support, and if we break down below there I think that the market probably unwinds to the 1.33 handle, and then eventually the 1.30 level. The alternate scenario is a break above the 1.36 level, reaching towards the 1.40 level eventually. The market continues to be very noisy, and I think that the choppiness is going to continue to be a major function of this market. I think that back and forth trading for short-term traders may be possible, but quite frankly I think that there is much more to be had if you are patient enough to wait for either a break down or a breakout.