GBP/USD – Flirting With Familiar Levels – 12/21/2016

GBP/USD – Flirting With Familiar Levels – 12/21/2016

During next 10 days, liquidity will be very thin in Forex market.  That means, usual rules doesn’t apply where you expect a pair to get fair support and resistance.  Illogical moves over/under shooting the big levels may occur and that will only provide good trading opportunities for those who are experienced and patient.

For GBP/USD, we are looking for 1.22 and 1.20 with keen interest.  Brexit headlines along with strong US dollar sentiment may push the pair to 1.20 or below.  But that will be a good buying opportunity to start a new year with.  No, we are not saying that 1.20 will be the floor for the British pound against US dollar but the initial breach during thin liquidity will be the fake break and that must be bought to grab few hundred pips at least.

Here you can see how we have got few hundred pips buying the drop from good support levels near 1.2500.  ( please check the link )

Follow us on Twitter @Bombay_Bulls for trade updates.

gbpusd_weekly_chart_dec_21_2016

gbpusd_weekly_chart_dec_21_2016