The British pound has rallied a bit during the trading session on Tuesday as we wait for the Federal Reserve announcement. That being said, the market is likely to continue to see a lot of noisy behavior, and therefore I think we will have to wait to see what the Federal Reserve does, and then of course what happens in England, although it’s probably worth noting that the British are dealing with very hot wage gains, which will continue to fuel inflation. In other words, it’s very likely that the Bank of England will have to remain tight for quite some time, and I think a lot of people are looking at it through the prism of this fact.
Currently, it looks as if we are trying to form a little bit of a double top, or breakout. I suspect that within the next day or 2, we should have a resolution to this question. With that being the case, I think a little bit of patience probably goes a long way. If we were to turn around and break down below the 1.2550 level, then it’s possible that we could go down to the 1.2350 level underneath, to continue the overall consolidation area. Anyway I'm long for this one until any sell signal appear.
Currently, it looks as if we are trying to form a little bit of a double top, or breakout. I suspect that within the next day or 2, we should have a resolution to this question. With that being the case, I think a little bit of patience probably goes a long way. If we were to turn around and break down below the 1.2550 level, then it’s possible that we could go down to the 1.2350 level underneath, to continue the overall consolidation area. Anyway I'm long for this one until any sell signal appear.