The British pound has found enough support at the 1.31 level underneath as we have seen more than once, and it looks as if we could go looking towards the 1.32 level above, as it was so resistive in the past, and then after that the 1.3250 level. I believe that level has a significant amount of supply, and it will be difficult to break above there. If we do clear that area, then the 1.33 level will be targeted. I truly believe that it comes down to what the Bank of England says on Thursday, and not much more at this point.

It’ll be interesting to see what they say about ramifications of the Brexit, if they mention it at all. I believe that short-term pullbacks will probably be buying opportunities in this market, but with the noise coming out over the course of the week, and a lot of geopolitical concerns, I think the one thing you can probably count on with most of the currency markets around the world right now is a lot of choppiness and indecision. We are about to go into the traditionally quiet time of the year, so this week might be extraordinarily volatile as longer-term traders jump in and out of the market to square up positions. In the short term though, I think the upside is probably a little bit stronger than the down.

GBP/USD Video 31.07.18

This article was originally posted on FX Empire

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