By: DailyForex.com

The GBP/USD pair fell during the session again on Friday, as we have cleared the 1.70 level to the downside. However, I see a significant amount is for all the way down to the 1.69 handle, and it is not until we get below there that I’m considering selling this pair. The candle itself looks a little bit like a hammer, and through some of the other brokers charts out there, it ended up being exactly that. With this, I believe that the buyers are getting ready to step back in and push the British pound higher.

On a break above the 1.70 level, I will be long of this market yet again. I believe that the market will then head to the 1.72 level where it all runs into significant resistance, but ultimately I think we go above there as well, heading towards a 1.75 level given enough time. That’s my longer-term target and has been for some time, there is nothing on this chart the changes my opinion on that.

Buying on the dips may be the way to go.

Going forward, I believe that this market will still grind and an upward direction, and as a result I think buying on dips will be the way to go, especially on short-term charts. I do believe that ultimately the British pound will continue to do fairly well, but the fact that we are pairing it against the US dollar makes it a bit choppy or than against other currencies as US dollar has a bit of a “safety aspect” to it.

However, I do recognize that if we break down below the 1.69 handle, some things may have just changed. With that, I believe that the market would then head to the 1.67 handle, and then ultimately the 1.65 Anna which of course is a large, round, psychologically significant number and therefore should attract a lot of order flow in general. Regardless though, I still believe that we go higher and feel fairly confident in the upside potential of this particular currency pair.

GBPUSD 72814

Related Articles
  1. Mutual Funds & ETFs

    ETFs Can Be Safe Investments, If Used Correctly

    Learn about how ETFs can be a safe investment option if you know which funds to choose, including the basics of both indexed and leveraged ETFs.
  2. Stock Analysis

    3 Chip Makers Betting on the Drone Industry in 2016 (INTC, QCOM)

    Find out which of the big chip makers are betting heavily on a burgeoning consumer drone market that could be the next big wave in consumer electronics.
  3. Stock Analysis

    Is Now the Right Time to Buy Coty? (COTY)

    Find out whether fragrance and color cosmetics powerhouse Coty deserves a place in your portfolio. Will recent acquisitions help turn the company around?
  4. Mutual Funds & ETFs

    Top 3 Allianz Funds for Retirement Diversification in 2016

    Discover the top three Allianz funds for retirement diversification in 2016, with a summary of the portfolio's managers, performance and risk measures.
  5. Mutual Funds & ETFs

    3 PIMCO Funds Rated 5 Stars by Morningstar

    Learn about three fixed income mutual funds managed by Pacific Investment Management Company (PIMCO) that have received five-star overall ratings from Morningstar.
  6. Mutual Funds & ETFs

    3 Invesco Funds Rated 5 Stars by Morningstar

    Learn about the top three mutual funds administered and managed by Invesco Ltd. that have received a five-star overall rating from Morningstar.
  7. Mutual Funds & ETFs

    The Top 4 Russell Funds for Retirement Diversification in 2016

    Discover four mutual funds administered and managed by Russell Investments that would add diversification benefits to a retirement portfolio.
  8. Mutual Funds & ETFs

    The 3 Best American Funds for the Income Seeker in 2016

    Learn about American Funds' mutual fund offerings, their past performance compared to peers and three American funds to consider for income investors.
  9. Investing News

    Obama Wants to Double Wall Street Regulation

    President Obama wants to double the budgets of the SEC and the CFTC over the next five years.
  10. Budgeting

    Is Living in Europe Cheaper than in America?

    Learn how living in Europe has financial advantages over living in the United States. Discover the benefits to take advantage of when it makes financial sense.
RELATED FAQS
  1. What is arbitrage?

    Arbitrage is basically buying in one market and simultaneously selling in another, profiting from a temporary difference. ... Read Full Answer >>
  2. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  3. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  4. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Full Answer >>
  5. What items are considered liquid assets?

    A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted ... Read Full Answer >>
  6. What is comparative advantage?

    Comparative advantage is an economic law that demonstrates the ways in which protectionism (mercantilism, at the time it ... Read Full Answer >>
COMPANIES IN THIS ARTICLE
Trading Center