Is the Pound Set to Breakout?
Rowan Crosby • 1 min read
The FOMC has certainly shaken up the majors on Wednesday. For a while there the dollar was looking rather bullish, but now it feels like it is super weak.
With that in mind, I’m still tempted to continue to trade with the weak directional bias in the USD. So that’s going to be short USD trades. The pound to me fits the bill.
Looking at the charts, we can see that the GBP/USD has been stuck in a trading range for a few weeks now. It hasn’t really been able to crack the 1.3300 mark.
I feel like this push might be enough to get things rolling and I’m eyeing the next level of 1.3400 as a profit target. Much will, of course, be based on whether or not we can actually hold 1.3300. If price consolidates above that point and shows buying pressure then I think we can look to go long ahead of a move to 1.3400. Price action will be important here.
Volume will also be low from here on out as the US will be having a half day Thursday and Thanksgiving on Friday. So keep that in mind.