The GBP/USD pair gained rapidly during the day as Janet Yellen started giving her speech in Wyoming. We have broken above the 1.2850 level, and also tested and broke the 1.29 handle. That’s an area that could have caused a bit of selling pressure though we saw the pair move towards the 1.30 level which we expected to give a shorting opportunity. Because of this, I’m going to be shorting the highs on this pair since it seems it's on a consolidation spree. I am not interested in buying the British pound right now, because it has broken down rather significantly, and in the recent past. While the Federal Reserve may be somewhat dovish, at the end of the day the British pound has more issues.
Good luck this week.
Good luck this week.