British pound rolls over significantly during the trading session on Thursday

The British pound rallied a bit during the trading session on Thursday, reaching towards the 1.3350 level. We rolled over from there to test the 1.33 handle, and it now looks as if the 1.33 level might offer support. I think that if we can rally from here, the market could reach towards a higher level, perhaps even the 1.34 handle, and then possibly the 1.35 level after that. Once we get to that area, we are likely to see the previous uptrend line offer significant resistance. I believe that any rally from here will be somewhat limited, and although you could be a short-term buyer, I think that the longer-term attitude is still to the negative side.

Otherwise, if we break down below the 1.3250 level, then I think we could continue to go much lower, perhaps reach towards the 1.30 level after that. I like the idea of shorting this market on signs of exhaustion more than anything else, or perhaps even breaks down below the lows of the session for the day on Thursday. I like the idea of the longer-term downtrend, but I recognize that the US dollar is over but in general, so that obviously could have some say in what we do over the next several days. Regardless, it’s obvious that we are going lower long-term from what I see. It’s not until we break above the previous uptrend line that I would remotely consider buying for a significant move.