The British pound has rallied significantly during the trading session on Thursday, as it looks like we are going to continue to consolidate in this general vicinity.
At this point in time, it is only a matter of time before we break above the 1.3150 level.
Ultimately, if the market breaks above there it is likely that we could go looking towards the 1.35 handle.
To the downside, the 1.30 level continues to offer significant support, and therefore if we were to break down below there, I think it would be interesting to see what happens next.
I have a theory that we will find plenty of support underneath at the 1.2750 level which of course is a major support area that extends down to the 1.2650 level.
The 50 day EMA is at the top of the range, while the 200 day EMA is at the bottom.
GBP/USD Video 14.08.20
Having said that, I do think that we probably break out to the upside first but am open to both scenarios.
One thing is for sure, I have no interest in shorting this market, because the pair is certainly in an uptrend.
With that being the case, there is no point in trying to short this market, and therefore I am simply either buying the breakout or purchasing value as it appears.
With this, I do believe it is only a matter of time before we go much higher as the Federal Reserve continues to destroy the US dollar by flooding the market with them.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire