(MENAFN- Daily Forex)

• The British pound fell significantly during the early hours here on Tuesday, but it looks like the 1.34 level is going to continue to offer a bit of support and as a result I think we've got a situation where we just go sideways Ultimately, this is a market that given enough time probably has to make a bigger decision But we are basically at fair value currently because we have been between 1.32 and 1.36 and 1.34 of course is right in the middle.

At the Top of a Big Upmove?

When you look at this market, it has gone higher for quite some time now, it looks like we are struggling to get any real footing. And it is worth noting that the US dollar is fighting back against multiple currencies. But the British pound had been stronger than many of the other. So I think this is a situation where you are looking at this as a good harbinger of what could happen. The US dollar against multiple other currencies. After all, if the British pound has been stronger and it suddenly collapses against US dollar, weaker currencies like the Canadian dollar, the New Zealand dollar, the Australian dollar, the euro are going to get eviscerated. That being said, though, we could rally from here. And if we do, I think the one point three six level is worth watching. This being the case, I would also take a look at the FOMC reaction. We've been down ever since then, and the US dollar looks as if it is trying to change its overall tune here. And with that being the case, I think you've got a situation where traders are going to continue to see a lot of volatility, I think maybe back and forth, neutral trading probably is the best way to approach this pair at the moment.

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