I like the idea of shorting this market, and I believe that the 1.3650 level above will offer a significant amount of resistance, not just because of the large, round, psychological significance of the number and the previous price action at the level, but also the 200-day simple moving average sitting just at that level. At this point we are more than likely going to see this market unwinding below the bottom of the range of the day on Thursday and going lower, or perhaps we could see an explosion to the upside but I would not be a buyer until we get above the previously mentioned 1.3650 level.
GBP/USD Daily Forecast - 11 May
According to barchart.com, the British pound has gone back and forth during the day as well, as we continue to bounce around this uptrend line. We are just below the 200-day simple moving average, which of course attract a lot of attention also. I think that if we can break down below the lows of the day on Thursday, the market could go to the 1.33 handle, and then eventually the 1.30 level after that.
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