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MENAFN- Daily Forex)
- We broke above the inverted hammer from the previous session.
- This of course is a technically bullish sign, and it does make a certain amount of sense that we would see traders jump into this market if we can in fact continue to hang on to the gains.
- That's going to be the real catch of course, whether or not we can maintain the momentum.
As I write this, the market is trying to do everything it can to break above the crucial 1.10 level, which of course has a lot of psychology attached to it. If we do break above that level, then it's likely that we will see quite a bit of follow through, but keep in mind that this pair is highly sensitive to risk appetite in general, and therefore we will need to watch other markets at the same time. After all, the Swiss franc is considered to be a“safety currency”, and while the British pound is not necessarily a risky currency, the reality is that the market is likely to continue to see jumping into the British pound as a way to express a lot of confidence in the global markets overall.
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The most important thing you can do here is signs your position accordingly, due to the fact that you are almost certainly going to see a lot of volatility. Ultimately, you need to be able to hang on to the massive amount of swings that you are almost certainly going to see over the next several sessions. The size of the candlestick is of course very impressive, but at this point it'll be interesting to see whether or not we can hang onto the recovery. After all, it'll be interesting also to see whether or not this is a market that is going to be able to hang on to the relief rally. I truly think we are at a major inflection point, so while I do love trading this pair to the upside in order to collect swap, the reality is that we are still in a very uncertain environment.
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