The pound has found it’s post Brexit bottom, talk of the pound a few weeks ago suggest it would fall below the 1.20’s but has failed to reach new lows since July. I had a firm belief that the low point was the lowest the pound would go just over a week after Brexit referendum was cast, and have been and will continue to forecast a buy on the dips approach.
On the daily at current levels, the down trend resistance was formed on August the 2nd at 1.32700 and broke above on the 1st of September and rallied to 1.34054 where it reversed.
Price is now resting on the former resistance at 1.31815 which makes it interesting and looks set to rocket. From this point price could bounce to 1.34054 and a break of this area could send it to the support of post Brexit day at 1.36500 and head on upwards to reach the 200MA . Waiting on a double bottom confirmation to go long on this set up a break of 1.34054 is needed.
On the 4H chart
Interesting enough on the 4H price has rejected off the 200MA which further confirms the pound maybe heading north.
A close below current support will make this analysis invalid.
Dont forget to leave any questions in the comments section 🙂