Forex Marketz Daily Forex News – Fully Markets Update
The GBP/USD pair fell initially during the session on Tuesday, but found enough support near the 1.5350 level to turn things back around and form a hammer. This hammer of course suggests that the market is going to continue bouncing, and I also have to recognize the fact that the candle from the Monday session was somewhat of a hammer. With that, I think that we are probably going to head back towards the 1.55 handle.
With that being the case, I feel that this is a short-term buying opportunity. I do not believe that the market can break out much higher than they are, just simply because the 1.55 level is the beginning of a significant amount of resistance all the way to the 1.58 level. Because of this, I believe that short-term buying opportunities persist, but I feel a little bit more comfortable shorting this market as it is a longer-term downtrend. A resistant candle above would be much more interesting to me, but I do recognize that there are short-term opportunities.
On entering, if we managed to break down below the 1.53 level, I feel that the market will drop to the 1.50 handle where it should find a massive amount of support. I do not think that the market will break below there anytime soon, so I essentially believe that we are trying to build a little bit of a base or perhaps just simply grind sideways in about a 500 pip range. Having said that though, if we break down below the 1.50 level, this market should continue to go much lower as it would be a bit of a trapdoor for significant dollar pressure.
On the other hand, if we break above the 1.58 handle, that would more than likely be a trend change, and lead to longer-term buy-and-hold type of opportunities. At that point in time, I would anticipate that short-term pullbacks should offer buying opportunities for the longer-term trader.
