The British pound initially fell during the trading session on Friday, but found enough support above a major trend line that it looks as if we are ready to try to turn things around. The question of course is how markets will react to the Jackson Hole speeches, But now it appears that those who favor a rally in the British pound are not ready to give up. If that is the case, then this could eventually be a nice buying opportunity.
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However, If we were to break down below the 200 day EMA, then the bottom of this market could go down. In that scenario, I think we will go to the 1.2350 level rather quickly, and then we may drop to the 1.20 level. I suspect that the market will continue to be very noisy anyway, Since there are a lot of questions about what is happening around the world. The Bank of England has recently seen some negative numbers to play around with, but after all, inflation continues to be an issue, and there is no sign that the BoE will change its stance in the short term. In other words, they are likely to be just as hawkish as the Federal Reserve.
However, Jerome Powell can shake up the markets, so be aware that massive volatility could be the rule for the next couple of weeks. I think at this point, we have to look at this market from the perspective of trying to protect your account and keep small positions. Furthermore, we are at the end of summer, so we have to wonder how much volume really is there, so some of the moves could be a bit overdone.
To the upside, if we can break above the 50 day EMA, the market is likely to go looking towards the 1.2850 level. Anything after that could lead to the possibility of a move to the 1.30 level, an area that has been important many times in the past, and of course has a certain amount of psychological significance. And that means we’re likely to see a lot of fighting in that area, if we get there.
2023-08-28 00:42:43
#Analysis #pound #sterling #dollar #today #pound
