British pound rallies during Thursday session

The British pound went back and forth during the trading session on Thursday, with a definite upward proclivity. The British pound rallied against most currencies in the Forex world, and as I record this video, it looks as if we are starting to see buyers underneath and I think that we will continue to extend to the upside. I believe that we are going to go looking towards the 1.43 level again, which was the scene of a massive turn around in the market. I believe the dips are to be bought, and that the “floor” in the market is probably somewhere near the 1.40 handle.

Short-term pullbacks continue to offer the value the traders are looking for, and if the markets do pull back, I am looking for an opportunity to build up a small position and then add as it goes along to the upside. However, when I look at this chart, I suspect that we are more likely to see buyers than sellers, so I think that we will see volatility, but I think that the British pound has proven itself to be much more resilient than many traders thought.

In fact, it’s not until we break down below the 1.40 level that I would consider selling this pair, and that doesn’t look likely at all. I recognize that the 1.43 level will be resistive, but once we break above there we should then go looking towards the 1.45 level which is my longer-term target. Needless to say, that will take quite a bit of time.