The British pound falls against greenback on Friday

The most important thing to pay attention to on this chart is that we have broken through a massive uptrend line on the weekly chart, and that of course is a very negative sign. I think short-term rallies should be selling opportunities, as we continue to see the US dollar show signs of strength, and it looks like that the rallies will continue to show signs of exhaustion. Those exhaustive candles are nice selling opportunities as we continue to go much lower, perhaps down to the 1.30 level. The market continues to be jittery of course, but I think that the market is most certainly negative.

If we did somehow break above the top of the uptrend line, then we could go much higher, perhaps reaching towards the 1.40 level. It’s very unlikely that it happens, and I think this would be in reaction to some type of headline, which of course is difficult to predict. I believe that the reaction on Friday shows just how negative this market is, and I believe that we are going to spend most of the summer dropping from this point on, perhaps down to the 1.30 level initially, where I think we would see a lot of interest in the market. Breaking the trendline is a major deal, so I think that a lot of traders are going to be looking for opportunity to pick up cheap dollars. This could be a great opportunity for those who are willing to be patient.