The GBP/USD pair initially rallied during the session on Tuesday, but then spend quite a bit of time falling. Below the 1.71 level, we found plenty of support and bounced yet again form a nice-looking hammer. This is the third hammer in a very short amount of time that we have seen, and as a result I feel that the market should continue to go higher sooner or later. After all, the market has broken out to the upside and above a significant resistance barrier in the form of the 1.7050 level. On the longer-term charts, that move is significant enough to have me in more of a “buy and hold” type of attitude when it comes to the British pound. On top of that, the British pound looks very healthy against most currencies currently, so it makes sense that the market should continue to go much higher.
Trying to short this market is like stepping in front of a moving train.
Even if this market is getting ready to pull back, I don’t personally care, as I see far too much in the way of support below. In fact, if we pullback at this area, I will probably only add to the position as soon as I see any type of support near the 1.7050 level. A supportive candle in that area would be without a doubt offer a nice buying opportunity as far as I can see, and should have this market looking for plenty of buyers to reenter the market and continue to push the British pound higher.
I believe that this market is in fact heading to the 1.75 handle, and as a result I plan on adding to my position every time we get a slight pullback, as the market should continue to find interest as this market is so obviously bullish at this point in time, and possibility begin a longer-term leg higher, which means we could be looking at a massive uptrend getting ready to happen, possibly lasting for a few years.
